Bajaj Auto Stock Can Hit Rs 20,000, Says Rajiv Bajaj.

Rajiv Bajaj, head of Bajaj Auto, said on Thursday that the company’s stock will soar to Rs 20,000 due to Bajaj Auto’s impressive performance this year with strong execution in exports and electric vehicles. Rajiv Bajaj highlighted the company’s remarkable growth across key segments in an exclusive interview with CNBC-TV18.

Bajaj Auto’s stock has already seen a major 146% surge from its 52-week low of Rs 4,902.80 in October 2023. The stock has gained 76% which is driven by consistent monthly gains to date and in August alone the stock rose 12.7%. This success is attributed to a significant upsurge in vehicle sales and record spares revenue.

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The company’s financials reflect its strong performance as Bajaj Auto’s standalone profit after tax (PAT) for the June 2024 quarter rose to Rs 1,988.34 crore which is up from Rs 1,664.77 crore the previous year. The company’s revenue grew 15.7% to Rs 11,928.02 crore which is supported by its vehicle sales and the residue revenue.

Bajaj Auto sold over 11 lakh vehicles in the quarter with a 7% increase year-on-year. The company’s  Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) rose 24% to Rs 2,415 crore and the operating margin improved to 20.2% from 19% which was driven by better realisations and cost management as per his statements Rajiv Bajaj’s prediction comes after he accurately forecasted the stock would reach Rs 12,000 in March. The stock achieved this milestone on September 18 with a record high of Rs 12,050 following his predictions.

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However, the company faces challenges in the Nigerian export market, But Rajiv Bajaj said that the company remains optimistic as it plans to increase production to meet strong demand for the Freedom motorcycle and Chetak scooter, but the concern is that Bajaj Auto struggles to exceed 20,000 units of Chetak electric scooter production due to high demand.