Bajaj Auto Limited (BAJAJ.AUTO) AI Stock Analysis

Bajaj Auto Limited

(NSE:BAJAJ.AUTO)

Select Model

Rating:61Neutral

Price Target:INR 10,624.00▲(2.65% Upside)

Action:reiterated

Date:10/02/26

The score is primarily supported by strong financial profitability and revenue momentum, but is held back by weaker quality-of-earnings (volatile operating/free cash flow) and a clear negative leverage trend. Technically, the stock shows very weak momentum and sits below major moving averages, further pressuring the overall rating, while valuation appears moderate with a modest dividend yield.

Positive Factors

Strong revenue growth and profitabilitySustained revenue compounding alongside high net and operating margins indicates strong underlying demand and effective operating economics. This combination supports reinvestment, resilience across product cycles, and the potential for earnings to remain durable over the next several quarters.

Negative Factors

Rising leverageThe sharp increase in debt and debt-to-equity represents a meaningful deterioration from Bajaj Auto’s historically low-debt profile. Higher leverage can reduce financial flexibility, increase obligations against future cash flows, and constrain capital allocation if operating conditions weaken.

Bajaj Auto Limited (BAJAJ.AUTO) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 2.84T
Dividend Yield: 1.45%
Average Volume (3M): 15.05K
Price to Earnings (P/E): 22.0
Beta (1Y): 1.14
Revenue Growth: 47.85%
EPS Growth: 57.37%
Country: India
Employees: 5,231
Sector: General
Sector Strength: 55
Industry: Auto - Manufacturers

Bajaj Auto Limited Business Overview & Revenue Model

Company Description

Bajaj Auto Limited, an Indian automotive major, primarily engages in the design, manufacturing, and distribution of a variety of vehicles. Its operations are structured across two main divisions: Automotive and Investments. The company's extensive pr...

How the Company Makes Money

Bajaj Auto makes money mainly by selling vehicles (two-wheelers and three-wheelers) in India and through exports to international markets. Its core revenue stream is the sale of motorcycles and scooters under the Bajaj brand, where earnings are drive...

Bajaj Auto Limited Financial Statement Overview

Summary

Strong revenue compounding and robust profitability (2026 net margin ~17%, operating profitability near 20%) support a solid base. However, the sharp rise in leverage (debt-to-equity ~0.58 vs historically low levels) and especially volatile cash conversion (negative operating cash flow in 2025; uneven free cash flow) materially reduce financial quality despite strong reported earnings.

Income Statement

86Very Positive

Balance Sheet

72Positive

Cash Flow

48Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	800.33B	629.05B	518.61B	461.61B	373.25B	342.87B
Gross Profit	227.53B	175.29B	164.95B	141.23B	110.52B	98.09B
EBITDA	191.70B	157.65B	119.54B	101.70B	74.42B	64.91B
Net Income	130.73B	107.44B	73.25B	77.08B	60.60B	61.66B
Balance Sheet
Total Assets	815.59B	772.23B	541.99B	393.44B	351.36B	351.11B
Cash, Cash Equivalents and Short-Term Investments	107.59B	110.94B	91.99B	62.99B	52.05B	59.03B
Total Debt	264.01B	226.40B	92.37B	17.86B	0	0
Total Liabilities	436.28B	369.77B	189.82B	103.81B	57.75B	52.52B
Stockholders Equity	366.06B	388.32B	351.89B	289.62B	293.62B	298.60B
Cash Flow
Free Cash Flow	0	22.22B	-19.78B	58.35B	41.67B	36.46B
Operating Cash Flow	0	27.83B	-11.64B	65.58B	52.77B	41.97B
Investing Cash Flow	0	-74.78B	-13.64B	-3.18B	12.00B	-808.60M
Financing Cash Flow	0	53.38B	42.96B	-61.93B	-71.81B	-40.56B

Bajaj Auto Limited Technical Analysis

Technical Analysis SentimentPositive

Last Price10350.00

Price Trends

50DMA11043.73Negative

100DMA10845.55Negative

200DMA10227.26Positive

Market Momentum

MACD-172.10Negative

RSI45.96Neutral

STOCH56.19Neutral

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 10350.00 is above the 20-day moving average (MA) of 10148.75, below the 50-day MA of 11043.73, and above the 200-day MA of 10227.26, indicating a neutral trend. The MACD of -172.10 indicates Negative momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 56.19 is Neutral, 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

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:BAJAJ.AUTO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:EICHERMOT	83Outperform	INR 1.98T	34.31	―	1.14%	28.07%	19.24%
IN:HEROMOTOCO	83Outperform	INR 1.03T	17.23	―	3.59%	27.00%	13.55%
IN:BAJAJ.AUTO	61Neutral	INR 2.84T	22.04	―	1.45%	47.85%	57.37%
IN:TVSMOTOR	59Neutral	INR 2.00T	52.06	―	0.29%	34.00%	46.03%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:ATHERENERG	55Neutral	INR 696.26B	-285.99	―	―	―	―
IN:OLAELEC	41Neutral	INR 165.76B	-8.17	―	―	-49.16%	26.59%

* General Sector Average

Performance Comparison

IN:BAJAJ.AUTO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:BAJAJ.AUTO	Bajaj Auto Limited	10350.00	1549.33	17.60%
IN:EICHERMOT	Eicher Motors Limited	7210.00	263.10	3.79%
IN:HEROMOTOCO	Hero Motocorp Limited	5152.40	-199.82	-3.73%
IN:OLAELEC	Ola Electric Mobility Limited	33.16	-17.07	-33.98%
IN:TVSMOTOR	TVS Motor Company Limited	4200.00	699.99	20.00%
IN:ATHERENERG	Ather Energy Limited	1755.05	1064.05	153.99%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 02, 2026

Bajaj Auto Limited AI Stock Analysis