Last updated on December 19th, 2024 at 09:36 pm
Bajaj Auto is a leading automobile manufacturer in India, specializing in motorcycles, three-wheelers, and electric vehicles worldwide.
About Bajaj Auto
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The House of Bajaj Auto Ltd produces two wheelers and three wheelers is one of the largest motorcycle and scooter manufacturers of India. Originally established in 1945, the company has expanded enormously and is now one of key players in the automotive market. The current leader in the motorcycle industry, Bajaj Auto has its own popular brands of bicycles, including Pulsar, Avenger and Chetak, one’s products are available in more than 70 countries. It is the world’s third-largest manufacturer of motorcycles and the largest exporting motor vehicle from India.
Company Details
- Founded: 1945
- Headquarters: Pune, Maharashtra, India
- Industry: Automotive Manufacturing
- CEO: Rajiv Bajaj
- Products: Bikes & scooters, auto rickshaw, electric vehicles
Promoters
- Bajaj Holdings & Investment Ltd.: 34.18%
- Rajiv Bajaj: 0.27%
- Niraj Bajaj: 0.02%
- Madhur Bajaj: 0.07%
Company Fundamentals
- Business Model: Bajaj Auto operates in the automobile sector, focusing on motorcycles, three-wheelers, and electric vehicles. The company has a strong market presence both domestically and internationally, particularly in premium motorcycles and three-wheelers.
- Key Strengths: Market leadership in the 125cc+ motorcycle segment, with models like Pulsar and the expansion of the Chetak electric scooter line
Financial Health
- EBITDA Margin: 19.7%, up by 180 basis points.
- Free Cash Flow: Nearly ₹6,600 crores, reflecting a 45% year-on-year growth.
- Debt-Equity Ratio: 0.03, showing low leverage
Growth Potential
- Domestic Market: Significant growth in the domestic motorcycle and three-wheeler segments. The company is also expanding into electric vehicles, with Chetak EV sales tripling year-on-year.
- International Expansion: Despite challenging overseas markets, exports were stable, with growth in Latin America and the Middle East compensating for a dip in Africa and Asia.
Historical Performance
- Record Sales: Highest-ever domestic sales in motorcycles, premium bikes, and three-wheelers, with a market share increase in motorcycles.
- Export Resilience: Bajaj Auto’s exports remained stable despite global challenges
Risk Factors
- Energy and Emissions Management
- Supply Chain Resilience
Bajaj Auto Share Price Target 2024 to 2040
| Year | Minimum Target (₹) | Maximum Target (₹) |
|---|---|---|
| Bajaj auto share price target 2024 | 11,495 | 12,000 |
| Bajaj auto share price target 2025 | 12,600 | 13,000 |
| Bajaj auto share price target 2026 | 13,500 | 14,500 |
| Bajaj auto share price target 2027 | 14,600 | 15,800 |
| Bajaj auto share price target 2028 | 15,900 | 17,200 |
| Bajaj auto share price target 2029 | 17,100 | 18,500 |
| Bajaj auto share price target 2030 | 18,500 | 20,000 |
| Bajaj auto share price target 2031 | 19,800 | 21,500 |
| Bajaj auto share price target 2032 | 21,200 | 23,000 |
| Bajaj auto share price target 2033 | 22,700 | 24,500 |
| Bajaj auto share price target 2034 | 24,300 | 26,200 |
| Bajaj auto share price target 2035 | 26,000 | 28,000 |
| Bajaj auto share price target 2036 | 27,200 | 29,500 |
| Bajaj auto share price target 2037 | 28,500 | 31,000 |
| Bajaj auto share price target 2038 | 29,800 | 32,800 |
| Bajaj auto share price target 2039 | 31,200 | 34,500 |
| Bajaj auto share price target 2040 | 32,500 | 36,000 |
Key Assumptions:
2024 – 2025
- Starting Price: ₹11,495.25 (as of October 2024)
- Estimated Growth Rate: 10-12% annually, given the company’s strong domestic sales, growing exports, and expansion into electric vehicles.
- Target Price for 2025: ₹12,600 – ₹13,000.
2026 – 2030
- Key Factors: Continued growth in the electric vehicle (EV) segment, premium motorcycles, and international markets. If Bajaj Auto can expand its EV portfolio and capture significant market share in emerging markets, this could lead to consistent growth.
- Estimated Growth Rate: 8-10% annually due to possible market saturation and competition.
- Target Price for 2030: ₹18,500 – ₹20,000.
2031 – 2035
- Key Factors: By this period, Bajaj Auto could face more competition in the EV sector. However, if the company stays ahead with innovations and maintains market dominance, the stock may grow steadily.
- Estimated Growth Rate: 7-9% annually, as global EV adoption could plateau by then.
- Target Price for 2035: ₹26,000 – ₹28,000.
2036 – 2040
- Key Factors: By 2040, technological advancements, market disruptions, or new market entries could shift the landscape. Bajaj Auto’s ability to innovate and adapt will dictate its future growth.
- Estimated Growth Rate: 5-7% annually.
- Target Price for 2040: ₹35,000 – ₹38,000.
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