- Bajaj Auto’s net income for the first quarter was 20.96 billion rupees, a 5.4% increase from the previous year, surpassing the estimated 20.12 billion rupees.
- The company reported revenue of 125.84 billion rupees, rising 5.5% year-over-year, which also exceeded the expected 122.83 billion rupees.
- Other operating revenue soared by 32% year-over-year to 5.03 billion rupees, beating the estimate of 3.38 billion rupees.
- Total costs for Bajaj Auto increased by 6.2% year-over-year, amounting to 102.28 billion rupees.
- The finance cost decreased by 32% year-over-year, totaling 141.4 million rupees, which was below the anticipated 148 million rupees.
- Total tax expense rose by 9.2% year-over-year, reaching 6.92 billion rupees, slightly above the estimate of 6.65 billion rupees.
- Other income grew significantly by 34% year-over-year, amounting to 4.31 billion rupees.
- EBITDA stood at 24.82 billion rupees, marking a 2.6% increase year-over-year, exceeding the forecast of 24.29 billion rupees.
- The EBITDA margin was 19.7%, compared to 20.2% the previous year.
- Current stock recommendations include 23 buys, 15 holds, and 7 sells for Bajaj Auto.
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Bajaj Auto Ltd on Smartkarma
Analysts on Smartkarma have differing views on Bajaj Auto Ltd based on recent research reports. Sreemant Dudhoria,CFA, with a bearish outlook, discusses the challenges faced by Pierer Mobility AG, the holding company of KTM, impacting Bajaj Auto’s financials. Highlighting past issues with Indian companies acquiring European businesses, Dudhoria recommends shorting Bajaj Auto due to potential margin and return ratio risks at the consolidated level.
On the other hand, Nimish Maheshwari‘s bullish perspective focuses on Bajaj Auto’s majority control acquisition of KTM AG. With an €800 million injection, Bajaj Auto aims to rescue the brand, secure technology, and expand into the premium-sport segment. This move, shifting Bajaj from a passive investor to a turnaround owner, may bring near-term earnings volatility but promises long-term gains in technology, brand equity, and market share in high-margin bike segments.
A look at Bajaj Auto Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have analyzed Bajaj Auto Ltd‘s long-term outlook using the Smart Scores system. With a strong Dividend score of 5, the company is expected to provide consistent and attractive dividends to its investors. Additionally, Bajaj Auto Ltd has received high scores for Resilience (4) and Growth (3), indicating its ability to weather market fluctuations and potential for future expansion.
Although Bajaj Auto Ltd scored lower in Value (2) and Momentum (3) factors, the overall outlook remains positive, especially with the company’s focus on manufacturing and distributing a range of motorized vehicles, including two-wheeled and three-wheeled scooters, motorcycles, and mopeds. Investors may find Bajaj Auto Ltd an appealing choice for long-term investment based on its strong dividend performance and growth potential.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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