The sell-off also witnessed stocks record their biggest single-day drop since March 2020, wiping out nearly Rs 42,000 crore of investors’ wealth. Furthermore, it was the most traded stock on the NSE with a total turnover of Rs 3,822 crore.
With a valuation below 3 lakh crore, the company also lost the tag of second most valued group company to Bajaj Finserv. As of Thursday’s close, Bajaj Finserv has a market capitalization of ₹ 2.9 lakh crore, which is ₹ 7,329 crore higher than that of Bajaj Auto.
Also read: Bajaj Auto Maintains 20% Operating Margin Despite Lower Profitability of EVs, Says CEO Sharma
Although Bajaj Auto’s September quarter numbers were largely in line with Street expectations, the management was more cautious regarding festive demand. The company now expects 3-5% growth in motorcycles during the season.
However, the recovery in export volume and the gain in market share in electric two-wheelers (E2W) are cause for joy. With the launch of the affordable Chetak in September 2024, the company now enjoys a market share of over 20% in the segment, ahead of its competitor TVS Motors.
“We are a little surprised by the outlook for holiday demand, where management noted that industry volumes were up just 1-2% compared to last year,” Citi wrote in a note to investors. The foreign brokerage, which has a “sell” rating on the stock with a 12-month price target $7,800 noted that “second quarter performance was marginally below estimates due to a slight miss in average selling prices (ASP) and gross margins.” Shares of Bajaj Auto ended Thursday’s session at ₹10,119.45 on the NSE.
Also read: Bajaj Auto shares fall the most since March 2020, lead losses in Nifty 50 after Q2 results
Bajaj Auto’s net profit rose 9% to Rs 2,005 crore in the September quarter, thanks to a 22% rise in net income. The company’s net income during the quarter stood at Rs 13,127 crore. That compares with a CNBC-TV18 survey of ₹13,270 crore for the quarter.
Bajaj Group, the country’s fifth-largest conglomerate, has a market capitalization of ₹12.4 lakh crore. While Bajaj Finance contributes more than a third of the group’s valuation, Bajaj Finserv along with Bajau Auto adds another 46% to the group’s aggregate valuation.
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