Bajaj Auto Limited (IN:BAJAJ.AUTO)
:BAJAJ.AUTO
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Bajaj Auto Limited
(BAJAJ.AUTO)
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Rating:70Outperform
Price Target:
₹11,667.00
▲(19.33% Upside)
Action:Upgraded
Date:05/08/26
The score is driven primarily by strong profitability and revenue momentum, but it is held back by increased leverage and volatile cash flow conversion. Technical momentum is supportive, while valuation appears moderately expensive despite a ~2% dividend yield.
Positive Factors
Revenue Growth
Multi-year revenue compounding and a double-digit 2026 YoY increase reflect durable demand for Bajaj Auto’s core vehicles. Sustained top-line momentum over several years strengthens scale economics, supports dealer inventory cycles, and underpins long-term production planning.
Negative Factors
Rising Leverage
Leverage has materially increased from historically low levels, reducing financial flexibility. Higher debt elevates refinancing and interest-rate exposure, which can constrain capex or dividends and compound stress if cash conversion weakens or sales soften in the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Multi-year revenue compounding and a double-digit 2026 YoY increase reflect durable demand for Bajaj Auto’s core vehicles. Sustained top-line momentum over several years strengthens scale economics, supports dealer inventory cycles, and underpins long-term production planning.
Read all positive factors
Bajaj Auto Limited (BAJAJ.AUTO) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.92T
Dividend Yield2.31%
Average Volume (3M)11.23K
Price to Earnings (P/E)22.8
Beta (1Y)1.20
Revenue Growth23.36%
EPS Growth46.63%
CountryIN
Employees6,192
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)298.48
Shares Outstanding279,497,830
10 Day Avg. Volume12,817
30 Day Avg. Volume11,226
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)6.31
Price to Sales (P/S)3.90
P/FCF Ratio110.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹10,500.00Price Target Upside7.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)401.61
Revenue Forecast (FY)₹674.15B
Bajaj Auto Limited Business Overview & Revenue Model
Company Description
Bajaj Auto Limited develops, manufactures, and distributes automobiles in India. It operates through Automotive and Investments segments. The company offers motorcycles, commercial vehicles, electric two-wheelers, etc., as well as related parts. I...
How the Company Makes Money
Bajaj Auto makes money primarily by selling vehicles—motorcycles and three-wheelers—through wholesale/dispatches to dealers and distributors in India and overseas, with revenue recognized from these vehicle sales. A significant portion of earnings...
Bajaj Auto Limited Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 539.86B | 629.05B | 518.61B | 461.61B | 373.25B | 342.87B |
| Gross Profit | 156.84B | 175.29B | 164.95B | 141.23B | 110.52B | 98.09B |
| EBITDA | 128.60B | 130.61B | 119.51B | 101.85B | 74.42B | 64.91B |
| Net Income | 83.30B | 107.44B | 73.25B | 77.08B | 60.60B | 61.66B |
Balance Sheet | ||||||
| Total Assets | 654.56B | 772.23B | 541.99B | 393.44B | 351.36B | 351.11B |
| Cash, Cash Equivalents and Short-Term Investments | 96.64B | 108.84B | 91.99B | 62.99B | 52.05B | 59.03B |
| Total Debt | 195.65B | 226.40B | 92.37B | 17.86B | 0.00 | 0.00 |
| Total Liabilities | 312.86B | 369.77B | 189.82B | 103.81B | 57.75B | 52.52B |
| Stockholders Equity | 341.70B | 388.32B | 351.89B | 289.62B | 293.62B | 298.60B |
Cash Flow | ||||||
| Free Cash Flow | -4.64B | 22.22B | -19.78B | 58.35B | 41.67B | 36.46B |
| Operating Cash Flow | -2.60B | 27.83B | -11.64B | 65.58B | 52.77B | 41.97B |
| Investing Cash Flow | -47.90B | -74.78B | -13.64B | -3.18B | 12.00B | -808.60M |
| Financing Cash Flow | 43.42B | 53.38B | 42.96B | -61.93B | -71.81B | -40.56B |
Bajaj Auto Limited Technical Analysis
Positive
9777.15
Price Trends
9606.11
Positive
9578.06
Positive
9200.70
Positive
Market Momentum
217.63
Positive
55.12
Neutral
21.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BAJAJ.AUTO, the sentiment is Positive. The current price of 9777.15 is below the 20-day moving average (MA) of 10074.49, above the 50-day MA of 9606.11, and above the 200-day MA of 9200.70, indicating a bullish trend. The MACD of 217.63 indicates Positive momentum. The RSI at 55.12 is Neutral, neither overbought nor oversold. The STOCH value of 21.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:BAJAJ.AUTO.
Bajaj Auto Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ₹994.04B | 17.64 | ― | 2.90% | 15.85% | 31.09% | |
70 Outperform | ₹2.92T | 22.81 | ― | 2.31% | 23.36% | 46.63% | |
69 Neutral | ₹1.88T | 35.30 | ― | 0.96% | 26.19% | 20.47% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | ₹1.46T | 26.60 | ― | 0.91% | 2.50% | -3.70% | |
49 Neutral | ₹1.60T | 52.95 | ― | 0.27% | 26.32% | 35.09% |
* Consumer Cyclical Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.