Bajaj Auto Limited (BAJAJ.AUTO) AI Stock Analysis

• Market Cap: ₹2.56T
• Dividend Yield: 2.29%
• Average Volume (3M): 11.23K
• Price to Earnings (P/E): 33.7
• Beta (1Y): 1.05
• Revenue Growth: 12.27%
• EPS Growth: -4.25%
• Country: IN
• Employees: 6,192
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Manufacturers
• EPS (TTM): 75.10
• Shares Outstanding: 279,257,600
• 10 Day Avg. Volume: 12,817
• 30 Day Avg. Volume: 11,226
• PEG Ratio: -8.19
• Price to Book (P/B): 6.34
• Price to Sales (P/S): 4.30
• P/FCF Ratio: -112.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹9,129.27
• Price Target Upside: -0.23% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

• Rating: 64 Neutral
• Price Target: ₹9,294.00 ▲(1.57% Upside)

Bajaj Auto Limited demonstrates strong financial performance with robust revenue growth and operational efficiency. However, challenges in cash flow and profitability margins, combined with weak technical indicators, weigh on the overall score. The stock's valuation is relatively high, but the dividend yield offers some support.

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. It also exports its products. The company was founded in 1945 and is based in Pune, India.

How the Company Makes Money

Bajaj Auto Limited generates revenue primarily through the sale of its two-wheeler and three-wheeler vehicles. The company has a broad product portfolio that caters to various segments of the market, from entry-level vehicles to premium motorcycles. Key revenue streams include domestic sales, where Bajaj Auto holds a significant market share, and export sales to over 70 countries, making it one of the leading exporters of two-wheelers and three-wheelers globally. Additionally, the company benefits from strategic partnerships and collaborations with other automotive companies, which enhance its product offerings and market reach. Bajaj Auto's strong brand reputation and extensive distribution network further bolster its revenue generation capabilities.

Bajaj Auto Limited Financial Statement Overview

Summary

Bajaj Auto Limited shows strong revenue growth and operational efficiency with a solid equity base. However, challenges in profitability margins and cash flow generation need attention. The balance sheet is robust, but increasing leverage requires monitoring.

Income Statement

Bajaj Auto Limited has demonstrated strong revenue growth with a 10.46% increase from 2024 to 2025. The gross profit margin is solid at 26.45%, although it has slightly decreased from previous years. The net profit margin has also decreased to 14.36%, indicating some pressure on profitability. Despite this, the EBIT margin remains high at 19.71%, showcasing operational efficiency. Overall, the income statement reflects robust growth and efficiency but highlights a need for improvement in net profitability.

Balance Sheet

The balance sheet of Bajaj Auto Limited shows a strong equity base with an equity ratio of 64.92%, indicating financial stability. However, the introduction of debt in 2025 has increased the debt-to-equity ratio to 0.26, which although manageable, indicates increasing financial leverage. The return on equity stands at 20.82%, reflecting efficient use of equity to generate profits. Overall, the balance sheet remains healthy but requires careful management of debt levels going forward.

Cash Flow

The cash flow statement reveals challenges in cash generation, with operating cash flow turning negative in 2025. The free cash flow has also declined significantly, with a negative free cash flow growth rate of -133.89%. The operating cash flow to net income ratio has deteriorated, indicating inefficiencies in cash conversion. While there have been strong financing activities, the overall cash flow position requires significant improvement to ensure sustainable liquidity.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	523.79B	518.61B	461.61B	373.25B	342.87B	289.57B
Gross Profit	153.02B	164.95B	141.23B	110.52B	98.09B	92.43B
EBITDA	125.07B	119.51B	101.85B	74.42B	64.91B	62.35B
Net Income	75.93B	73.25B	77.08B	60.60B	61.66B	48.57B
Balance Sheet
Total Assets	0.00	541.99B	393.44B	351.36B	351.11B	336.02B
Cash, Cash Equivalents and Short-Term Investments	92.01B	91.99B	62.99B	52.05B	59.03B	85.45B
Total Debt	0.00	92.37B	17.86B	0.00	0.00	0.00
Total Liabilities	-351.89B	189.82B	103.81B	57.75B	52.52B	63.28B
Stockholders Equity	351.89B	351.89B	289.62B	293.62B	298.60B	272.73B
Cash Flow
Free Cash Flow	0.00	-19.78B	58.35B	41.67B	36.46B	28.60B
Operating Cash Flow	0.00	-11.64B	65.58B	52.77B	41.97B	31.20B
Investing Cash Flow	0.00	-13.64B	-3.18B	12.00B	-808.60M	-28.68B
Financing Cash Flow	0.00	42.96B	-61.93B	-71.81B	-40.56B	-195.20M

Bajaj Auto Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9150.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 9150.5 is above the 20-day moving average (MA) of 8890.07, above the 50-day MA of 8827.66, and above the 200-day MA of 8317.96, indicating a bullish trend. The MACD of 64.81 indicates Negative momentum. The RSI at 60.88 is Neutral, neither overbought nor oversold. The STOCH value of 86.50 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HEROMOTOCO	79 Outperform	₹1.12T	22.21	―	2.95%	3.30%	23.39%
TATAMOTORS	69 Neutral	₹1.46T	6.89	―	0.91%	-1.08%	-34.23%
EICHERMOT	69 Neutral	₹1.93T	39.90	―	0.99%	15.21%	15.48%
BAJAJ.AUTO	64 Neutral	₹2.56T	33.65	―	2.29%	12.27%	-4.25%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HYUNDAI	60 Neutral	₹1.91T	34.55	―	0.89%	-2.62%	-11.26%
TVSMOTOR	59 Neutral	₹1.74T	72.73	―	0.27%	14.06%	39.28%