Prabhudas Lilladher Moves Bajaj Auto to 'HOLD', Raises Target to ₹10,400

AUTO
Whalesbook Logo
AuthorIshaan Verma|Published at:
Prabhudas Lilladher Moves Bajaj Auto to 'HOLD', Raises Target to ₹10,400
Overview

Prabhudas Lilladher has moved Bajaj Auto to a 'HOLD' rating from 'Accumulate', citing the stock's rise after a buyback and disruptions from the West Asia conflict. The brokerage kept its ₹10,400 target price after Bajaj Auto reported strong Q4FY26 results, with revenue up 31.8% and margins expanding. While optimistic about EVs and exports, concerns remain about its market share in the 75-125cc domestic motorcycle segment.

Instant Stock Alerts on WhatsApp

Used by 10,000+ active investors

1

Add Stocks

Select the stocks you want to track in real time.

2

Get Alerts on WhatsApp

Receive instant updates directly to WhatsApp.

  • ✓Quarterly Results
  • ✓Concall Announcements
  • ✓New Orders & Big Deals
  • ✓Capex Announcements
  • ✓Bulk Deals
  • ✦And much more
Add StocksGet it on Google PlayDownload on the App Store

Bajaj Auto reported strong Q4FY26 results, with revenue rising 31.8% year-on-year to INR160.1 billion. Margins were boosted by favorable foreign exchange rates, a strong product mix, and operating leverage. These factors more than offset rising raw material costs and the end of incentives for electric three-wheelers.

Future Prospects and Market Share Concerns

Bajaj Auto expects to outpace industry growth, driven by continued gains in its 150cc+ motorcycle segment, expansion in electric vehicles (EVs), and strong export performance. However, Prabhudas Lilladher highlighted a key risk: a declining market share in the 75-125cc domestic motorcycle segment, which accounted for about 53% of its two-wheeler volumes in FY26.

Why the 'HOLD' Rating

Despite the solid Q4 results and growth outlook, Prabhudas Lilladher moved its rating to 'HOLD' from 'Accumulate'. The downgrade reflects significant stock price gains after the buyback and wider uncertainties from the West Asia conflict that could affect supply chains and demand. The brokerage raised its price target to ₹10,400 from ₹10,000, valuing the stock at 23 times its projected FY28 earnings per share, up from the previous 22 times multiple.

Get stock alerts instantly on WhatsApp

Quarterly results, bulk deals, concall updates and major announcements delivered in real time.

Add Stocks
Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.