Rama Krishna Sangem
Bajaj Auto which recently introduced its Freedom 125 CC bike is betting big on its new models of CNG/EV two wheelers for its first quarter – Q1-25- results to be announced July 16, Tuesday. 16. Demand for this new bike is expected to be high both in India and aborad.
Analysts anticipate robust double-digit revenue growth driven by ongoing volume recovery, particularly in rural areas. The growth, analysts believe, is expected to be accompanied by considerable margin improvement year-on-year (Y-o-Y).
Ahead of the earnings, Bajaj Auto’s stock was buzzing in trade. The stock surged as much as 3.27 per cent to reach an intraday high of Rs 9,737.50 per share on July 15.
However, at 2:03 PM, shares were off highs and were trading 2.69 per cent higher at Rs 681.85 per share. In comparison, the BSE Sensex was up 0.31 per cent at 80,768.13 levels.
Ahead of the earnings, Bajaj Auto’s stock was buzzing in trade. The stock surged as much as 3.27 per cent to reach an intraday high of Rs 9,737.50 per share on July 15.
However, at 2:03 PM, shares were off highs and were trading 2.69 per cent higher at Rs 681.85 per share. In comparison, the BSE Sensex was up 0.31 per cent at 80,768.13 levels.
Therefore, analysts expect Bajaj Auto to post a net profit of Rs 2,025.4 crore; revenue of Rs 11,853 crore; Ebitda at Rs 2,401 crore; and Ebitda margin at 20.3 per cent
Nuvama Institutional Equities
Nuvama Institutional Equities analysts anticipate that year-on-year revenue growth will be bolstered by increased volume and improved realisation.
They predict an expansion in Ebitda margin due to enhanced net pricing and a favourable product mix, with a reduced proportion of 100cc models. Key areas of interest, analysts said, include developments in CNG/E-mobility initiatives and the outlook on demand.
As a result, analysts project a profit of Rs 1,907.3 crore, with revenue expected to reach Rs 11,708.9 crore and Ebitda to come in at Rs 2,274.3 crore.
Kotak Institutional Equities
Those at Kotak Institutional Equities anticipate revenue to grow 14 per cent year-on-year in Q1FY25, propelled by a 7 per cent increase in volumes and a 7 per cent rise in average selling prices (ASPs). The increase in ASPs, analysts believe, will be driven by a higher proportion of premium two-wheelers, electric two-wheelers, and three-wheelers.
Analysts project a 10 basis points (bps) improvement in Ebitda margin quarter-on-quarter for Q1FY25. This enhancement is attributed to a more favourable product mix, with a greater share of premium two-wheelers. However, it will be partially offset by challenges such as commodity price pressures and increased losses in the electric vehicle segment due to reduced FAME-II subsidy.
