On January 6, Bajaj Auto’s share price jumped up to 3% and reached a fresh 52‑week high.
What sparked the rally?
Brokerage house Emkay Global upgraded the stock to “Buy” from “Add” and lifted its price target to Rs 11,100, suggesting about a 17% upside.
Key reasons behind the upgrade
- Strong export growth: Exports now make up about 44% of the company’s sales in FY26 YTD, up from 39% a year earlier, helped by weaker currencies in Latin America and Asia.
- New bike launch: A refreshed Pulsar range is slated for release in 2026, expected to boost earnings.
- Domestic demand: Premium motorcycle and electric scooter sales are picking up in the third quarter of FY26.
- Electric three‑wheelers: Bajaj now leads this fast‑growing segment with roughly 32% market share, overtaking Mahindra.
What investors should note
Emkay believes the mix of export strength, currency tailwinds, and upcoming product launches gives Bajaj Auto the best risk‑reward profile at current levels. The firm expects the company’s volume, revenue, and earnings to keep growing over the medium term.
Remember, this is perspective, not a prediction. Do your own research and consider your risk tolerance before making any investment decisions.