Shares of Bajaj Auto Ltd. are likely to cross the mark of ₹6,000 apiece, according to brokerage firm Morgan Stanley. The brokerage is one among the eight analysts who expect the stock to cross that mark.
Morgan Stanley's price target of ₹6,229 comes with an "overweight" rating and implies a potential upside of another 8% from current levels. This is the second-highest price target on the street for Bajaj Auto, following JPMorgan's target of ₹6,400.
Shares of the manufacturer of the iconic "Chetak" scooter have risen 60% so far in 2023. This is the best annual performance for the stock since 2010, when it had risen 75%.
Morgan Stanley wrote in its note that Triumph sales are ramping up better than expected. The company is also ramping up production and distribution to 10,000 units.
"Going forward, obviously, the next stop should be 10,000 (units) a month and I think we are looking good for that. I must say that apart from expanding capacity we also have to expand distribution because as Triumph has its own exclusive network," Bajaj Auto CEO Rajiv Bajaj told CNBC-TV18 in an exclusive conversation on November 22.
The brokerage also mentioned that the Chetak EV is seeing a strong ramp-up and has already become the No.3 E-Three-wheeler player. A new model launch is also planned nex month with capacity likely to be ramped up to 20,000 units per month over the next few months, the note said.
"The Chetak is back in an electric avatar. The three-wheeler again on the back of CNG and now the electric three-wheelers is really doing well as you know, and finally, exports after having dipped a little bit slowly coming back and as you know, we are the largest exporter out of India," Rajiv Bajaj said on Wednesday.
For the domestic business, Bajaj Auto's 125CC+ portfolio grew at the rate of over 50% from last year during the festive season, while the three-wheeler business has maintained a market share of 80%, the note said.
Out of the 47 analysts that track Bajaj Auto 27 have a "buy" recommendation, while 14 say "hold." Six analysts have a "sell" rating on the stock.
Rajiv Bajaj mentioned that introducing the Pulsar, KTM, acting upon the Chetak, expanding three-wheeler distribution and commencing exports are the five factors, according to Rajiv Bajaj, which the market is appreciating.
Shares of Bajaj Auto are trading 2.4% higher at ₹5,891 and is the top gainer on the Nifty 50 index.
First Published: Nov 23, 2023 9:33 AM IST
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