Top Stocks Today : IIFL Securities has Buy call on Bajaj Auto - June 03
IIFL Securities issued a buy recommendation for Bajaj Auto on June 03, with a target price of Rs 9650. This recommendation implies a potential upside of approximately 2.8% from the current market price of Rs 9382.5. The brokerage firm believes that the company's strong brand presence, wide distribution network, and focus on electric vehicles will drive its growth in the coming quarters. Additionally, the brokerage cited the company's recent launch of new models, such as the Chetak electric scooter, as positive factors.
About Bajaj Auto:
Bajaj Auto is an Indian multinational two-wheeler and three-wheeler manufacturer headquartered in Pune, Maharashtra, India. It is a part of the Bajaj Group. The company was founded in 1945 as Bachraj Trading Corporation Private Limited and began manufacturing auto rickshaws in 1959. Bajaj Auto is the world's largest manufacturer of motorcycles and the second largest manufacturer of three-wheelers. The company's product range includes motorcycles, scooters, and three-wheelers. Bajaj Auto has a strong presence in India and also exports its products to over 70 countries.
52 Week Price Trend:
Bajaj Auto, standing at Rs 9382.5, has witnessed a substantial climb from its 52-week low of Rs 3625.6, marking a remarkable 159% surge. The stock's performance has been driven by strong demand for its two-wheelers both domestically and internationally, as well as its focus on cost optimization and efficiency improvements. Despite recent macroeconomic challenges, Bajaj Auto's resilience and strong financial position have positioned it well to continue its growth trajectory. However, investors should note that the stock is currently trading near its 52-week high and may be subject to some volatility in the short term.
Stratzy's MOST Analysis:
BAJAJ-AUTO has received an AAA rating from Stratzy's MOST Framework, which evaluates stocks based on Management, Outlook, Safety, and Trend. This exceptional rating indicates that BAJAJ-AUTO exhibits strong fundamentals with low fundamental risks. The company's robust management team, positive outlook, unwavering safety standards, and favorable market trends contribute to its overall AAA rating, signaling a high level of stability and potential for growth.
Company's Fundamentals:
Bajaj Auto is a two-wheeler manufacturer with a current stock PE ratio of 32.32, indicating investors are willing to pay 32.32 rupees for every rupee of its earnings. Its PB Ratio of 8.16 suggests the stock's market value is 8.16 times its book value, implying it's priced at a premium. Despite this, Bajaj Auto offers a Dividend Yield of 1.66%, representing the portion of the share's current market price distributed to shareholders as dividends, indicating a balance between growth potential and income generation for investors.
Fundamental and Technical information provided in this blog were last updated on 01 Jun, 2024
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