News

Auto Stock to BUY: Shares of Bajaj Auto Ltd ended higher on Monday after returning to positive territory, with the stock closing at Rs 9,668 on the NSE, up 1.80 per cent. The counter had touched a fresh 52-week high during the session as renewed buying interest followed a brokerage upgrade.

The stock rose as much as 3 per cent intraday to hit Rs 9,783.5, its highest level since November 2024, snapping a two-day losing streak.

Sentiment improved after Emkay Global upgraded Bajaj Auto to ‘Buy’ from ‘Add’ and raised its price target to Rs 11,100, suggesting an upside of nearly 17 per cent from current levels. The brokerage said the company’s earnings outlook remains strong, supported by exports and upcoming product launches.

Exports remain a key strength for Bajaj Auto, with demand holding firm across Latin America and Asia. Emkay pointed out that overseas volumes have benefited from favourable currency movements, which have also helped protect margins.

Exports now account for about 44 per cent of total volumes in FY26 year-to-date, up from 39 per cent in FY25, underlining the growing contribution of international markets to the company’s overall performance.

On the domestic side, the brokerage flagged early signs of recovery, particularly during the third quarter of FY26. Demand has been supported by better traction in premium motorcycles and electric scooters, categories where Bajaj Auto has been steadily strengthening its presence.

Bajaj Auto has also gained ground in the electric mobility space. In the electric three-wheeler segment, the company has overtaken Mahindra & Mahindra as of December 2025, with a market share of around 32 per cent. Analysts see this segment as an important contributor to future growth as adoption continues to rise.

Emkay added that Bajaj Auto’s export-heavy business model positions it well to benefit from currency tailwinds, especially in markets across Asia, Latin America and parts of Africa. Combined with new launches and improving domestic demand, these factors are expected to support profitability over the coming quarters.

Despite the recent rally, Emkay believes Bajaj Auto continues to offer an attractive risk-reward profile. The brokerage expects steady growth in volumes, revenues and earnings over the medium term, backed by exports, leadership in electric three-wheelers and a strong product pipeline.

Shweta Birendra Shukla is a Senior Sub-editor at Zee Business, born and raised in Mumbai—the city that never sleeps and the financial capital that never stops buzzing.