Bajaj Auto’s Managing Director, Rajiv Bajaj, is confident that the company’s share price could touch ₹20,000, following the brand’s impressive performance this year. In a recent interview with CNBC-TV18, Rajiv Bajaj highlighted key areas such as electric vehicles and exports as the main drivers of growth for the company. On 19th September, Bajaj Auto’s stock witnessed a slight increase of about 1%, trading at ₹11,863.90 on the BSE. With this rise, the market cap of the company surged to ₹3.31 lakh crore.
Bajaj Auto’s Electric Revolution and Capacity Struggles
Rajiv Bajaj pointed out the increasing demand for the company’s Chetak electric scooter. However, the company is facing production capacity issues, currently limited to 20,000 units. Despite these challenges, Bajaj is optimistic about future growth, particularly with the continued popularity of their Freedom motorcycle and Chetak.
Record-Breaking Performance in FY24
Bajaj Auto has reported strong financial results this year, reflecting in its rising share price. In the June 2024 quarter, the company’s PAT grew to ₹1,988.34 crore, up from ₹1,664.77 crore in the previous year. Revenues rose by 15.7%, reaching ₹11,928.02 crore, supported by robust vehicle sales. The company sold over 11 lakh vehicles in the quarter, marking a 7% growth year-on-year. Bajaj Auto’s EBITDA also rose by 24%, pushing the operating margin to 20.2%.
Impressive Stock Market Returns
In the past year, Bajaj Auto’s stock has delivered a remarkable return of 129%, outperforming many of its competitors. Over the last month, the shares have risen by 22%, and they have posted a 77% increase so far this year.
Despite export challenges in markets like Nigeria, Rajiv Bajaj remains confident about the future, with plans to ramp up production to meet growing demand.
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