Bajaj Auto Ltd.
NSE: BAJAJ-AUTOBajaj Auto Ltd.: A 30-second snapshot
Bajaj Auto trades at ₹10,342, up 25.58% over the past year, sitting above both its 50-DMA (₹9,820) and 200-DMA (₹9,244) with RSI at 54.51. The company reported Q4 PAT growth of 34% and May 2026 domestic sales growth of 20% alongside a 34% jump in exports, while announcing a ₹150/share dividend and a share buyback. Trailing PE stands at 26.9x against a forward PE of 22.2x, with 5-year earnings growth of 103.1% and ROE of 28.05%.
P/E
26.9
Forward P/E
22.2
ROE
+28.1%
Debt / Equity
56.29
Profit Margin
+16.5%
Div. Yield
+1.4%
5Y ROE > 15%
4/5
5Y FCF > 0
3/5
Quality
74/100
News
8 headlines · 5 positive · 0 negative
Bajaj Auto Sales Rise 20% in May; Exports Jump 34% - HDFC Sky
HDFC Sky
Bajaj Auto Share Buyback: All you need to know as a shareholder - CNBC TV18
CNBC TV18
Bajaj Auto's new leadership move - Manufacturing Today India
Manufacturing Today India
Bajaj Auto Q4 PAT surges 34% to ₹2,746 crore, with dividend at ₹150 a share - The Hindu
The Hindu
Bajaj Auto Net Profit Rises 34% In Q4, Announces Bumper Dividend Of ₹150 Per Share - ACKO Drive
ACKO Drive
Recent context
- ·Bajaj Auto reported Q4 FY26 PAT of ₹2,746 crore, up 34% year-on-year, and declared a ₹150/share dividend, the largest in the data window for this stock.
- ·May 2026 retail sales rose 20% and exports jumped 34%, extending a run of positive monthly sales data that has driven the recent news sentiment (5 positive, 0 negative of 8 recent headlines).
- ·A share buyback was announced alongside Q4 results, the terms of which were covered by CNBC TV18 as a shareholder-communication event; a new leadership appointment was also reported in manufacturing trade media.
Strengths
- +ROE of 28.05% ranks 1st among the 6-stock Auto peer group, ahead of Eicher Motors (23.77%), M&M (18.75%), Bosch (19.35%), and MARUTI (14.43%).
- +5-year revenue growth of 48.8% and 5-year earnings growth of 103.1% indicate sustained compounding of both top- and bottom-line over the medium term.
- +Forward PE of 22.2x represents a 17.5% compression versus the trailing PE of 26.9x, reflecting analyst expectations of continued near-term earnings expansion.
- +Profit margin of 16.51% and a consistency score of 83 (out of 100) in the persistence module point to stable earnings quality across the available historical window.
Weaknesses
- −Debt-to-equity of 56.29 is anomalously elevated for a two-wheeler manufacturer and likely consolidates captive-finance or NBFC subsidiary debt, making standalone leverage assessment impossible from this figure alone.
- −FCF-positive years number only 3 out of an unspecified total in the persistence data, leaving the full cash-generation track record unverifiable.
- −Quality score of 55 is mid-pack within the peer set (2nd of 6), indicating the stock does not lead on the composite quality measure despite its ROE ranking.
- −The stock is within 3.8% of its 52-week high, with resistance identified at ₹10,635 and ₹10,750, offering a narrow gap between current price and the nearest supply zone.
Open questions
- ?Does the 103.1% five-year earnings growth reflect a structural improvement in Bajaj Auto's product mix and export positioning, or does it partly reverse an unusually depressed base in the earlier years of that window?
- ?How does the standalone balance sheet leverage compare to the consolidated debt-to-equity of 56.29, and what proportion of the debt sits in the captive-finance subsidiary versus the core manufacturing entity?
- ?With the stock trading 3.8% from its 52-week high and resistance at ₹10,635, what operating or macro scenarios would need to materialise to sustain the price above the current resistance band?
- ?The forward PE of 22.2x implies a material step-up in earnings — what is the analyst community's assumed revenue growth and margin trajectory that underpins that estimate, and how sensitive is it to a slowdown in export volumes?
Peer comparison: Auto
Ranks 2 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| BAJAJ-AUTO | Bajaj Auto Ltd.You're viewing | 26.9 | +28.1% | 55 |
| Industry avg | across 5 peers | 30.7 | +15.0% | 42 |
| EICHERMOT | Eicher Motors Ltd. | 35.2 | +23.8% | 66 |
| M&M | Mahindra & Mahindra Ltd. | 20.0 | +18.8% | 52 |
| BOSCHLTD | Bosch Ltd. | 39.6 | +19.4% | 45 |
| MARUTI | Maruti Suzuki India Ltd. | 28.0 | +14.4% | 31 |
| TMPV | Tata Motors Passenger Vehicles Ltd. | — | -1.1% | 16 |
Technical state
Current price
₹10,342.00
SMA 50
₹9,819.77
SMA 200
₹9,243.93
RSI (14)
54.5 (neutral)
From 52w high
-3.8%
1Y return
+25.6%
3M return
+7.0%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- mediumDebt-to-equity is reported at 56.29, which is anomalously high for a two-wheeler OEM and almost certainly consolidates NBFC or captive-finance subsidiary liabilities. Standalone leverage cannot be verified from this figure; the net-borrowing profile warrants separate examination against the standalone balance sheet.
- lowFCF-positive years are recorded as 3 out of an unspecified total in the persistence module; the denominator is unavailable, so the FCF consistency ratio cannot be fully assessed from published data.
- lowpriceChange1Y is null for all 5 listed Auto sector peers, eliminating peer-relative price-performance comparison entirely. News sample is limited to 8 headlines, concentrated around a single event cluster (May sales data, Q4 results, dividend, buyback).
- lowQuality score of 55 ranks 2nd of 6 in the Auto peer group, trailing Eicher Motors (66). Peer set includes TMPV with negative ROE (-1.12%), which may widen apparent sector-average quality.
Cross-section contradictions
- 5-year earnings growth of 103.1% and ROE of 28.05% place BAJAJ-AUTO first in ROE among its Auto peers, yet its trailing PE of 26.9 is below Eicher Motors (35.2x) and Bosch (39.6x), both of which have lower ROEs — a valuation discount relative to quality rank that stands out within the peer set.
- News sentiment is uniformly positive (5 positive, 0 negative of 8 headlines) and May 2026 sales rose 20% with exports up 34%, yet the stock is only 3.8% from its 52-week high — the price already reflects much of the positive news flow with limited upside gap to resistance at 10,635.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 6 Jun 2026 · rotates through NIFTY 500 every ~5 days