Bajaj Auto stock crosses ₹6,000 mark for the first time; up 66% in CY23 so far

Continuing their triumphant run for the 9th successive trading session, Bajaj Auto shares surged to a new historic high of ₹6,039 apiece in today's trading session, surpassing their previous high of ₹5,960 apiece.

The stock began today's session at ₹5,969.80 apiece and remained flat throughout the day before gaining substantial momentum in the final hour of trade, breaching the significant ₹6,000 mark for the first time.

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Following the company's October sales release, the stock witnessed a one-way spike. In addition to this, strong financial performance, analysts' optimistic views, and positive market sentiments towards the automobile industry have further propelled the stock.

In November so far, the stock surged 13%, outshining Nifty Auto, which posted an 8% gain during the same period. Notably, the stock has registered a staggering 66% rally year-to-date, the best yearly performance since CY10.

In the current year, the company's market capitalisation surged from ₹1,03,541 crore to ₹1,69,722 crore, marking an impressive addition of ₹66,181 crore.

Global brokerage firm Morgan Stanley has maintained its ‘overweight’ rating on Bajaj Auto with a target price of ₹6,229 apiece. The brokerage highlighted that Triumph sales are advancing at a faster pace than anticipated.

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In Q2, the company sold more than 8,000 units of Triumph Speed 400 motorcycles. The company is on track to take the brand experience to over 100 cities by year-end, up from the current 26.

Earlier in July 2023, Bajaj Auto launched the Triumph Speed 400 and Triumph Scrambler 400X in association with British bike maker Triumph in India at affordable prices. These bikes compete with Eicher Motors - Royal Enfield.

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Triumph has been a combination of classic, iconic style and modern technology. The affordable-priced Triumph would attract a new set of aspirational customers for Bajaj Auto, according to analysts.

The company reported a 19% YoY increase in total sales, recording 4,71,188 units in October 2023 as compared to 3,95,238 units in the same month of 2022. The total two-wheeler sales witnessed a 19% YoY growth, with 4,08,144 units sold in October 2023 as against 3,41,903 units sold in October 2022.

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On the commercial vehicles front, the company sold 63,044 units in the domestic market, recording a growth of 35% YoY, while the export market witnessed a drop of 28% YoY.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.