Bajaj Auto Shares Plummet by 2% on Dismal Sales Report

Bajaj Auto shares dip on weak sales

Bajaj Auto Shares Plummet by 2% on Dismal Sales Bajaj Auto’s shares took a hit on January 1, 2025, after the company reported its December sales, which fell short of expectations. The total sales for the month were 3.23 lakh units, a 1% year-on-year decrease, missing analysts’ forecast of 3.55 lakh units. The sales included 1.62 lakh units in domestic sales, down 15% compared to last year, while exports rose 18% to 1.60 lakh units.

In the two-wheeler segment, sales declined by 4%, totaling 2.72 lakh units. However, the three-wheeler segment saw a 16% increase, with sales reaching 50,952 units. Domestic two-wheeler registrations also dropped by 14%.

Despite the domestic sales dip, the company’s electric two-wheeler segment remained strong, holding a 25% market share. Brokerage firm Emkay Global upgraded Bajaj Auto’s stock rating to ‘Add,’ citing solid export prospects and strong performance in electric two-wheelers. They set a price target of ₹9,500, suggesting a potential upside of 10%, though it’s below the stock’s recent peak of ₹12,774. As of 10 AM, Bajaj Auto shares were trading at ₹8,625.20, down 1.97%. Despite this, the stock has appreciated by around 30% in the last year.

Bajaj Auto Shares Plummet by 2% on Dismal Sales Bajaj Auto’s shares fell by 2% on the first trading day of 2025 after the company reported disappointing December sales. The total sales for the month declined by 1% year-on-year to 3.23 lakh units, missing analysts’ expectations of 3.55 lakh units. Domestic sales were particularly weak, dropping 15% to 1.62 lakh units compared to 1.90 lakh units in December of the previous year.

As of 9:29 AM, Bajaj Auto shares were trading at ₹8,652 on the NSE. The company’s stock had previously suffered a near 30% drop during the April-August period of 2024, making it one of the worst-performing auto stocks. However, analysts at Emkay Institutional Equities believe the steep decline was unjustified, noting that the outlook for exports is improving, with a strong recovery underway. While domestic demand remains weak, markets like Nigeria and Latin America are showing signs of growth.

Bajaj Auto Shares Plummet by 2% on Dismal Sales

As of 10:34 AM on January 1, 2025, Bajaj Auto shares are priced at ₹8,640.05, reflecting a 1.81% decline for the day. Key metrics include a P/E ratio of 32.69, earnings per share (EPS) of ₹263.96, and a market capitalization of ₹240,997 crore. The stock’s 52-week high is ₹12,774, while the low is ₹6,560.

Bajaj Auto’s stock is currently down by 1.92% for the day, with its 3-day exponential moving average at ₹9,045.79 and its 5-day EMA at ₹9,305.01. The stock has also broken below its second support level, currently priced at ₹8,649.50. Over the last month, the stock has experienced a 2.6% decrease. Despite these declines, the stock saw a 30% increase in 2024.

Bajaj Auto Shares Plummet by 2% on Dismal Sales Bajaj Auto’s share price dropped by over 2% on January 1, 2025, following the announcement of its December sales data. The stock fell by as much as 2.86%, reaching ₹8,550.00 on the BSE. The company reported a 1% year-on-year (YoY) decline in total sales for December, with 3,23,125 units sold compared to 3,26,806 units in December 2023. Domestic sales were particularly weak, falling 15% to 1,62,420 units, while exports increased by 18% to 1,60,705 units.

In the two-wheeler segment, sales decreased by 4%, totaling 2,72,173 units. Domestic two-wheeler sales dropped by 19%, while exports rose by 15%. Commercial vehicle (CV) sales, however, saw a 16% increase, with exports jumping by 50%.

Bajaj Auto’s share price has fallen by over 29% in the past three months, but it has rallied 28% in the last year and delivered a 174% return over the past five years. Despite the recent downturn, brokerage firm Emkay Global upgraded its rating to ‘Add’ with a target price of ₹9,500 per share. Analysts believe the stock’s recent correction reflects weaker domestic two-wheeler sales and normalized three-wheeler volumes, but the company stands to benefit from a recovery in exports and its leadership in the electric two-wheeler market. As of 10:00 AM, the stock was trading at ₹8,618.65, down 2.08%.