Fri Oct 18 02:45:25 UTC 2024: ## Bajaj Auto Shares Plunge Over 10% After Q2 Results

**Mumbai, India:** Shares of Bajaj Auto plummeted over 10% in early trading on Thursday, October 17th, following the release of the company’s second-quarter results. The stock reached a low of ₹10,352.70 apiece on the BSE, marking a decline of 10.88%.

While Bajaj Auto reported a 9.2% increase in standalone net profit to ₹2,005.04 crore for Q2FY25 compared to the same period last year, the market reacted negatively to the company’s performance. Total revenue from operations grew by 22% to ₹13,127.47 crore, and EBITDA rose by 24.4% year-on-year to ₹2,652.4 crore.

Analysts attributed the share price drop to a lower-than-expected Average Selling Price (ASP) and muted two-wheeler retail growth.

Emkay Global Financial Services downgraded Bajaj Auto to a ‘Sell’ rating and revised its target price to ₹9,500 per share, citing concerns about the company’s market share loss in the fast-growing 125cc category. The brokerage firm prefers Hero MotoCorp and TVS Motor Company in the two-wheeler segment.

Citigroup also holds a ‘Sell’ rating on Bajaj Auto, with a target price of ₹7,800 per share. The firm cited a slight miss in ASPs and gross margin in the company’s Q2 results as reasons for their bearish stance.

Despite the negative sentiment, Nuvama Institutional Equities maintained a ‘Buy’ call on Bajaj Auto, raising its target price to ₹13,200 from ₹12,000. The firm highlighted the company’s positive two-wheeler volume prospects and growing presence in the electric/CNG space.

Bajaj Auto shares have experienced a steep decline in recent weeks, falling over 13% in the past month. However, the stock has still registered a strong year-to-date performance, rallying over 53% and delivering multibagger returns of over 101% in the past year.

Traders are advised to exercise caution with Bajaj Auto shares, which are currently in a mildly oversold zone. It is recommended to add shares in small quantities with a stop loss below ₹10,000, according to Milan Vaishnav, founder of ChartWizard FZE and Gemstone Equity Research.

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