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Bajaj Auto’s Path To Two-Wheeler Dominance in India



Bajaj Auto’s Path To Two-Wheeler Dominance in India

Bajaj Auto Ltd. was founded by Jamnalal Bajaj in 1945. Currently headquartered in Pune, the company is a leading manufacturer of two-wheeler and three-wheeler vehicles.

The company has evolved drastically from the era of Bajaj Chetak to that of the latest Pulsar bike which every middle-class Indian youth wishes to own. Read on to learn more about profits earned by Bajaj Auto Ltd and its understanding of its finances.

Bajaj Auto Financial Analysis

Bajaj Auto Ltd. is a front-runner in the automobile industry in India. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is an important parameter to consider when studying the growth of the company. EBITDA stood at Rs 6,551 crores and the company also recorded net sales worth Rs 35,359 crores for FY2023

The table below mentions the growth the company has experienced in the fiscal year 2023-2024 for a better understanding of the performance.

Category (Yearly)March 2024 (In INR cr)March 2023 (In INR Cr)
Net Revenue from Operations43,578.8735.359.15
Net Profit7478.795627.60 crores
Basic Earnings Per Share264.60197.30

Bajaj Auto Share Price

This Bajaj Auto share price chart draws a clear picture of the movement of the company in the stock market.

At present Bajaj Auto share price is trading around Rs, 8750. The 52-week low was Rs 4460+ whereas the 52-week high was Rs 9,350+ in May. Earnings Per Share (EPS) TTM of the company has increased to 276.10 in May 2024.

In a period of one year i.e. from February 2023 to January 2024, the stock price has doubled from Rs 3,625.05 to Rs 7,420. In the past 6 months, the Bajaj Group stocks have also gained 50%.

Should One Invest In Bajaj Auto?

Bajaj Auto witnessed a boost in sales of its premium motorcycles, particularly driven by two Triumph models. Sales in the premium segment which includes Dominar, KTM and Husqvarna models increased threefold in the quarter.

Owing to its strong performance in the December quarter, the company has proposed to repurchase shares worth Rs 4,000 crores for Rs 10,000 each. Owing to its consistent growth and an undying demand for two-wheelers, investing in Bajaj Auto Ltd. can be a good buy for long-term investors as well as momentum traders.

However, it is important to note that you should research well and understand your goals and risk appetite to invest in stocks.

The Bottom Line

Bajaj being a reputed company native to India has a solid customer base. Having partnered with premium brands like Triumph, the company has captivated the attention of the middle class and made luxury affordable as well as achievable.  Investing in Bajaj Auto Ltd. seems to be a good option for long-term investors.

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