Bajaj Auto Limited

Stocks
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Bajaj Auto: Strategizing for Growth in Domestic and International Markets

Bajaj Auto aims to sustain domestic growth, diversify into new sectors, and revive exports, leveraging its strong financial position and innovative approach.

In its FY24 Annual Report, Bajaj Auto Ltd., led by Chairman Niraj Bajaj, revealed a strategic roadmap focused on maintaining domestic growth and further diversifying into new sectors, along with revitalizing exports. With an emphasis on sustainability and innovation, the company has aimed to solidify its position in the market while tapping into emerging opportunities for expansion and recovery.

Domestic Business Expansion

With India emerging as the fastest-growing economy globally, Bajaj Auto anticipates upwards of 7% real GDP growth in FY25, fostering a conducive environment for continued domestic demand. The company, according to the reports, is focused on sustaining its strong performance across all segments, leveraging the buoyant economic climate to drive growth.

Export Volume Recovery

Despite facing challenges in international markets, Bajaj Auto wants to remain resolute in its target to recover export volumes. Chairman Bajaj acknowledged the complex international landscape but also expressed confidence in the company’s ability to navigate through it successfully.

Expansion in New Business Ventures

Bajaj Auto also outlined plans to augment its capacity, capabilities, and network for its new ventures, including Chetak electric scooters, electric three-wheelers, and Triumph motorcycles. This expansion aligns with the global trend towards electric mobility which will help the company diversify and capture the emerging markets.

Financial Strength

Bajaj Auto maintains a good financial position, boasting surplus cash and cash equivalents of Rs.16,386 crore as of Q4FY24. Despite significant capital investments and payouts to shareholders, the company’s healthy balance sheet enables it to invest in future growth initiatives and expand further.

Conclusion
Bajaj Auto’s strategy, focusing on domestic growth, export volume recovery, and expansion into new business segments will help the company gain a strong position in the emerging markets. With strong financial backing and foresight, the company seems well-positioned to capitalize on the emerging demands.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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Bajaj Auto Considers For Expansion Of e3W Portfolio

Bajaj Auto is exploring ways to expand its electric three-wheeler portfolio, which constitutes 10% of its three-wheeler business portfolio.

Bajaj Auto is to assign a new manufacturing facility worth Rs. 800 crore for its electric three-wheelers in Waluj, Maharashtra. Pune-based Bajaj Auto, a two- and three-wheeler major, is exploring ways to expand its electric three-wheeler portfolio. As of now, only 10% of the production of electric three-wheelers is in the revenue model. Bajaj Auto is looking to scale up its three key businesses: electric three-wheelers, Chetak electric scootersand Triumph motorcycles. Mr. Dinesh Thapar, CFO of Bajaj Auto, stated that the current EV business is on a very small scale and the investments made in the past 16–18 months are yielding results. They will maintain the Rs. 800 crore investment in three-wheelers and assess the outcomes before deciding on further investments. Bajaj is India’s leading manufacturer of autorickshaws, but it does not hold the top position in scooters. In this segment, it ranks fourth with a market share of approximately 12%, trailing behind Hero Motocorp Ltd., Honda Motorcycle and Scooter India Pvt. Ltd., and TVS Motor Company Ltd.

Bajaj Auto Q1 FY25 results:
The company’s total revenue surged by 15.70% to Rs 11,928.02 crore in Q1 FY25, compared to Rs 10,309.77 crore in the corresponding period last year. Bajaj Auto Ltd. demonstrated significant growth of 19.44% in its Q1 FY25 profit due to strong operational performance. The automaker’s standalone profit after tax (PAT) rose to Rs 1,988.34 crore for the three months ending on June 30, 2024, from Rs 1,664.77 crore in the previous year. Average Selling Price (ASP) increased by 7.9% year-over-year (YoY) as a result of a 760 basis point improvement in 125cc and higher category motorcycles. The electric portfolio (e2W and e3W) of Auto accounted for 14% of its domestic revenue, thanks to a consistent effort to increase the penetration of these products.

Bajaj Auto stock run:
Bajaj Auto stock moved 2% in the Inraday today and is now running at Rs. 9,450.00 per share, with a high traded price of Rs. 9484.90.

Bajaj Auto got an order of 6,000 bikes:
Bajaj Auto has received 6,000 bike orders for its newly launched CNG motorbike, Bajaj Freedom, which was introduced earlier this month. More than 100 bikes have already been delivered to customers.

Conclusion

Bajaj Auto wants to significantly expand in the EV segment to become a leader in the industry soon. That’s why they have been consistently investing in the EV segment for the past few months.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.