Shares of Bajaj Auto have gained 4.33 per cent on a year-to-date (YTD) despite a 1.54 per cent decline in the 30-share BSE Sensex pack. The stock settled 0.27 per cent lower at Rs 3,723.85 on Monday. The domestic benchmarks are closed today on account of ‘Holi’ and would reopen on Wednesday.
The two- and three-wheeler maker’s net profit increased around 23 per cent to Rs 1,491 crore for the quarter that ended December 2022 (Q3 FY23). Bajaj Auto’s revenue from operations rose 3 per cent to Rs 9,315 crore.
Turnover on the counter stood at Rs 1.59 crore, commanding a market capitalisation (m-cap) of Rs 1,05,369.08 crore.
Kotak Institutional Equities has assigned a ‘Reduce’ call and pegged the Bajaj Auto counter at a fair value of Rs 3,625 over the next 12 months, suggesting a potential downside of 2.66 per cent from its Monday’s closing level.
One analyst suggested that the stock faces resistance above Rs 3,800 level, while another hinted to avoid a long-term position for now.
Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, “Bajaj Auto is hovering near the cluster of its moving averages on the daily charts from the past couple of trading sessions with no clear direction. The stock has a sturdy resistance of its bearish gap placed around the Rs 3,800-3,835-odd zone, and until it decisively surpasses the same, some tentativeness is likely to persist in the counter. On the flip side, the immediate swing low of Rs 3,625-3,640 is expected to cushion a short-term blip in a comparable period.”
Ganesh Dongre, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, “At the current juncture, the major support level for the stock stands at Rs 3,500-3,550 level. We recommend traders avoid this stock for taking a long position in the current situation.”
The stock traded higher than the 5-day, 50- and 100-day moving averages but lower than the 20-day and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 45.45. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a price-to-equity (P/E) ratio of 18.60.
Yet, Bajaj Auto has an average target price of Rs 4,089.33, Trendlyne data showed, suggesting a potential upside of 9.84 per cent. The scrip has a one-year beta of 0.62, indicating low volatility.
Meanwhile, the automaker’s total wholesales declined by 11 per cent year-on-year (YoY) to 2,80,226 units in February. However, Bajaj Auto said its total domestic sales increased by 36 per cent to 1,53,291 units last month, as compared with 1,12,747 units in the year-ago period.
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