Shares of Bajaj Auto Ltd. rose 1.16% to Rs 3,698.5 apiece in trade on Tuesday as the automotive stocks advanced in trade.
The stock gained as much as 2.83% intraday to Rs 103.15 apiece, rising the most since Jan. 27, 2023.
Total traded volume stood at 2.6 times its 30-day average. The relative strength index was at 42.3.
Out of the 51 analysts tracking the company, 34 maintain a ‘buy’ rating, 13 recommend a ‘hold’ and four suggest to ‘sell’ the stock. According to a latest note by Morgan Stanley, it maintains an ‘overweight’ rating on the stock with a target price of Rs 4,449.
The return potential as calculated by the consensus of analyst estimates, stand at an upside of 14.6% over the next 12 months.
Morgan Stanley On Bajaj Auto
- Maintains an ‘overweight’ rating on the stock with a price target of Rs 4,449 and a potential upside or downside of 16% to the target, depending on risks.
- Brokerage cites media reports on Bajaj Auto, pegging the March production to be in between 2.5-2.7 lakh as compared to the last three-month average production of 2.8 lakh units.
- Brokerage expects dispatches to Nigeria, that forms around 15%+ of exports and 7% of total volumes, to be very low in February and March as the country is going through general elections.
- Exports to have low near-term visibility but with high medium to long term growth potential.
- Borkerage estimates 25% YoY decline in FY23 exports, flat growth in FY24 and 2.1 million exports in FY25, which would be higher by 15% as compared to 2.5 million exports in FY22.
Source: Bloomberg
