Main Reasons Why Bajaj Auto Rallies over 55% in CY23—its Biggest Annual Performance since 2010

Bajaj Auto

Leading two-wheeler producer and Bajaj Group flagship firm Bajaj Auto has seen outstanding performance from its shares on the exchanges this year, with a 57.3% rise so far. This is the best annual performance for the stock since 2010.

Since January 2023, the company’s shares have been steadily rising without any notable declines. The stock has ended eight months in positive territory over the last ten months. The stock reached a new all-time high of ₹5,676 per share in today’s trading.

The impressive results are ascribed to robust financial outcomes, enhanced sales, and favourable market perceptions of the automotive sector.

Bajaj Auto announced on November 1st, 2023, that their total sales had increased by 19% YoY, to 4,71,188 units from 3,95,238 units in October of 2022. Sales of two-wheelers as a whole increased by 19% year over year, from 3,41,903 in October 2022 to 4,08,144 in October 2023.

Regarding commercial vehicles, the company saw a 35% YoY increase in sales of 63,044 units in the home market and a 28% YoY decline in sales in the export market.

The company reported strong quarterly results for the September quarter, with net profit increasing by 17.51% YoY to ₹2,020 crore. In Q2, revenue from operations reached a record high of ₹10,777 crore, up 6% year over year.

With a growth of 21% YoY, the quarterly EBITDA surpassed the ₹2,000 crore milestone for the first time, coming in at ₹2,133 crore. Better realisation and a more varied product mix more than offset the drag from investments in the rapidly expanding electric scooter market, as the EBITDA margin increased by 260 basis points to 19.8%.

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