Bajaj Auto shares reached a 52-week high of ₹10,838, while TVS Motor climbed 4.5% following strong first-quarter financial performance. Both companies reported higher-than-expected profit growth and margins, leading multiple brokerages to revise their outlooks upward as domestic demand and export targets remain in focus.
Detailed Coverage
Shares of Bajaj Auto touched a fresh 52-week high of ₹10,838 on Wednesday, rising over 4 percent from the previous close of ₹10,403.50 on the National Stock Exchange. The move follows the company’s first-quarter results for the 2027 fiscal year, where it reported an EBITDA margin of 20.9 percent. This margin figure indicates the company successfully managed its operational profitability despite fluctuations in commodity costs. Looking ahead, the management has shared plans to increase monthly export volumes to approximately 250,000 units starting in the second quarter of the 2027 fiscal year.
Brokerage Views and Earnings Performance
Following the financial disclosures, several global and domestic financial firms updated their views on the stock. Bernstein and CLSA both maintained an outperform rating on Bajaj Auto, with target prices set at ₹11,500 and ₹12,068, respectively. Jefferies opted for a hold rating with a target of ₹11,500, noting that the company’s year-over-year growth in both EBITDA and Profit After Tax exceeded their initial projections. Motilal Oswal upgraded the stock to a buy, setting a target of ₹12,096, and emphasized the potential for growth across the company’s various business segments.
TVS Motor Company also experienced a positive market reaction, with its stock price rising to ₹3,965. The company reported a 40-41 percent year-over-year increase in EBITDA and recurring profit, which helped it outperform analyst expectations. Jefferies maintained a buy rating for TVS Motor, raising its target price to ₹4,900 and increasing earnings per share estimates for the 2027-2029 period by 4-5 percent. Similarly, CLSA and Macquarie maintained outperform ratings with price targets of ₹4,384 and ₹4,325, respectively, citing resilient margins and lower-than-anticipated credit costs.
Investors may note that the automotive sector's performance in upcoming quarters will depend heavily on sustained domestic demand and the successful scaling of export volumes. While the recent margin expansion is a positive indicator of operational efficiency, the sector continues to face risks related to raw material price volatility and global export demand. The next key monitorable will be whether Bajaj Auto can meet its ambitious export volume targets and if TVS Motor can maintain its current margin trajectory throughout the rest of the fiscal year.