Continuing its triumphant run for the 9th consecutive trading session, Bajaj Auto shares surged to a new all-time high of ₹6,039 per in today’s trading session, surpassing their previous high of ₹5,960 a piece.
The stock started today’s session at ₹5,969.80 each and remained flat throughout the day before gaining major momentum in the final hour of trading, breaching the significant ₹6,000 mark for the first time.
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After the company’s October sales release, the stock witnessed a one-way spike. In addition to this, strong financial performance, optimistic analyst views and positive market sentiments towards the auto industry further boosted the stock.
In November so far, the stock is up 13%, outshining Nifty Auto, which posted an 8% gain over the same period. Notably, the stock has registered a stunning 66% year-to-date rally, the best annual performance since CY10.
In the current year, the company’s market capitalization has increased ₹1,03,541 crore to ₹1,69,722 crore, marking an impressive addition of ₹66,181 crores.
Global brokerage firm Morgan Stanley maintained its ‘overweight’ rating on Bajaj Auto with a target price of ₹6,229 each. The brokerage emphasized that Triumph sales are progressing faster than expected.
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In Q2, the company sold more than 8,000 units of Triumph Speed 400 motorcycles. The company is on track to bring the brand experience to more than 100 cities by the end of the year, up from the current 26.
Earlier in July 2023, Bajaj Auto launched the Triumph Speed 400 and Triumph Scrambler 400X in association with British bike manufacturer Triumph in India at affordable prices. These bikes compete with Eicher Motors – Royal Enfield.
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Triumph was a combination of classic, iconic style and modern technology. The affordable Triumph would attract a new set of aspirational customers for Bajaj Auto, according to analysts.
The company reported an increase of 19% in total sales, registering 4,71,188 units in October 2023 as compared to 3,95,238 units in the same month of 2022. The total sales of two-wheelers witnessed a growth of 19%, with 4, 08,144 units sold in October 2023 against 3,41,903 units sold in October 2022.
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On the commercial vehicle front, the company sold 63,044 units in the domestic market, registering a growth of 35% YoY, while the export market witnessed a drop of 28% YoY.
Disclaimer: The opinions and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.
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Updated: 28 Nov 2023, 16:53 IST