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Bajaj Auto Limited
(BAJAJ.AUTO)
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Rating:68Neutral
Price Target:
₹12,690.00
▲(8.00% Upside)
Action:Downgraded
Date:08/09/26
The score is primarily driven by strong profitability and growth, but is meaningfully held back by deteriorating balance-sheet leverage and inconsistent cash flow conversion. Technicals are supportive with a clear uptrend, though momentum is overbought. Valuation is a secondary headwind due to a higher P/E and modest dividend yield.
Positive Factors
Strong revenue and profitability
Consistent multi-year top-line growth alongside a ~17% net margin and ~20% operating profitability indicates durable core earnings power. This level of operating efficiency supports reinvestment in products, channel strength and cushions cyclical downturns, sustaining long-term cash generation.
Negative Factors
Rising leverage
Debt rising to a ~0.58 debt-to-equity ratio marks a material shift from a historically low-debt profile, reducing financial flexibility. Higher leverage increases interest exposure, limits ability to fund opportunistic capex or buybacks, and raises downside risk in an economic slowdown.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue and profitability
Consistent multi-year top-line growth alongside a ~17% net margin and ~20% operating profitability indicates durable core earnings power. This level of operating efficiency supports reinvestment in products, channel strength and cushions cyclical downturns, sustaining long-term cash generation.
Read all positive factors
Bajaj Auto Limited (BAJAJ.AUTO) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.24T
Dividend Yield1.27%
Average Volume (3M)14.34K
Price to Earnings (P/E)28.0
Beta (1Y)1.11
Revenue Growth36.91%
EPS Growth54.76%
CountryIN
Employees5,231
SectorGeneral
Sector StrengthN/A
IndustryAuto - Manufacturers
Share Statistics
EPS (TTM)420.98
Shares Outstanding274,803,830
10 Day Avg. Volume12,735
30 Day Avg. Volume14,341
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)6.31
Price to Sales (P/S)3.90
P/FCF Ratio110.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
₹11,916.67Price Target Upside1.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)427.84
Revenue Forecast (FY)₹707.76B
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...
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 dr...
Bajaj Auto Limited Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 701.61B | 629.05B | 518.61B | 461.61B | 373.25B | 342.87B |
| Gross Profit | 209.80B | 175.29B | 164.95B | 141.23B | 110.52B | 98.09B |
| EBITDA | 176.78B | 157.65B | 119.51B | 101.85B | 74.42B | 64.91B |
| Net Income | 117.59B | 107.44B | 73.25B | 77.08B | 60.60B | 61.66B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 772.23B | 541.99B | 393.44B | 351.36B | 351.11B |
| Cash, Cash Equivalents and Short-Term Investments | 108.03B | 110.94B | 91.99B | 62.99B | 52.05B | 59.03B |
| Total Debt | 0.00 | 226.40B | 92.37B | 17.86B | 0.00 | 0.00 |
| Total Liabilities | -402.20B | 369.77B | 189.82B | 103.81B | 57.75B | 52.52B |
| Stockholders Equity | 402.20B | 388.32B | 351.89B | 289.62B | 293.62B | 298.60B |
Cash Flow | ||||||
| Free Cash Flow | -4.64B | 22.22B | -19.78B | 58.35B | 41.67B | 36.46B |
| Operating Cash Flow | -2.60B | 27.83B | -11.64B | 65.58B | 52.77B | 41.97B |
| Investing Cash Flow | -47.90B | -74.78B | -13.64B | -3.18B | 12.00B | -808.60M |
| Financing Cash Flow | 43.42B | 53.38B | 42.96B | -61.93B | -71.81B | -40.56B |
Bajaj Auto Limited Technical Analysis
Neutral
11750.00
Price Trends
11260.55
Positive
10659.06
Positive
9943.61
Positive
Market Momentum
166.36
Positive
53.00
Neutral
20.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BAJAJ.AUTO, the sentiment is Neutral. The current price of 11750 is below the 20-day moving average (MA) of 11847.23, above the 50-day MA of 11260.55, and above the 200-day MA of 9943.61, indicating a neutral trend. The MACD of 166.36 indicates Positive momentum. The RSI at 53.00 is Neutral, neither overbought nor oversold. The STOCH value of 20.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:BAJAJ.AUTO.
Bajaj Auto Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | ₹2.13T | 36.58 | ― | 1.06% | 28.07% | 19.24% | |
77 Outperform | ₹1.05T | 19.39 | ― | 3.50% | 25.64% | 8.11% | |
68 Neutral | ₹3.24T | 27.95 | ― | 1.27% | 36.91% | 54.76% | |
59 Neutral | ₹1.97T | 57.09 | ― | 0.29% | 30.24% | 43.76% | |
57 Neutral | ₹624.48B | -163.06 | ― | ― | ― | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | ₹172.69B | -9.64 | ― | ― | -49.16% | 26.59% |
* General Sector Average
IN:BAJAJ.AUTO
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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.