Bajaj Auto shares hit 52-week high; jumps over 66% YTD; What’s driving the stock?

Bajaj Auto stock has been on a ride over the past one year, offering more than 66% returns to investors year to date. The share price rose 0.70% to hit a fresh 52-week high of Rs 5,971.95 intra-day Tuesday. It advanced 4.11% in the last 5 days, 11.75% in the last one month and a whopping 28.46% in the last six months.

Abhishek Gaoshinde, Deputy Vice President Research at Sharekhan by BNP Paribas, highlighted multiple factors driving Bajaj’s stock price. These include sustaining margins above 19% for the last 4 quarters, a soft raw material cost trend, exports bottoming out, and plans to launch multiple electric two-wheelers. Abhishek Gaoshinde further added that the launch of electric 3-wheelers (E3W) has worked in favour, as it is not a margin-dilutive business. Moreover, the company’s entry into the iconic premium brand segment, through the launch of the Triumph 400 cc, has provided an edge to the stock.

Besides this, the auto company reported a growth of 6% YoY in their second-quarter revenue in FY24 to Rs 10,777 crore. The company’s quarterly EBITDA surpassed the Rs 2,000 crore milestone for the first time at Rs 2,133 crore, registering a YoY growth of 21% during the same period.