Bajaj Auto shares hit a 52-week high for second consecutive session; can it rise further in the near term?
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Bajaj Auto's share price is experiencing a significant uptrend, reaching a 52-week high following strong Q1FY27 results, which showed a 42.3% YoY increase in net profit and a 37% rise in revenue. Analysts are bullish on the stock, with several brokerages upgrading their target prices and recommending 'buy' due to expected market share recovery and strong demand outlook. Investors are advised to consider dips as buying opportunities as the stock is projected to continue its upward trajectory.
Bajaj Auto share price is on a solid uptrend, buoyed by the company's strong results for the April-June quarter of the financial year 2026-27 (Q1FY27). The automobile stock hit its 52-week high for the second consecutive session on Thursday, 23 July.
Bajaj Auto share price opened at ₹11,005 against its previous close of ₹10,999.30 and climbed 3% to hit a one-year high of ₹11,333. In the previous session, the stock surged 5.7% despite weak market sentiment.
Shares of Bajaj Auto have been rising after the company, during market hours on 21 July, reported a 42.3% year-on-year (YoY) rise in its standalone net profit to ₹2,982.84 for Q1FY27.
Its revenue from operations grew 37% YoY to ₹17,243.72 crore, driven by record quarterly volumes and better realisations.
Total sales increased 29% to 14,38,251 units, while domestic sales grew 11%, and exports jumped 54%.
The stock declined 1% on 21 July after the results announcement, but rebounded in the next session after experts and top brokerage firms expressed their bullish views about the stock for the long term.
Among the top domestic brokerages, Motilal Oswal Financial Services upgraded the stock to a 'buy' from a "neutral', with a target price of ₹12,096, citing it expects the company to gradually recover market share in the domestic motorcycle market due to its healthy launch pipeline.
Emkay Global Financial Services also maintained a 'buy' call on the stock and raised its target price to ₹13,700 from ₹13,000, at 26 times June 2028E core EPS.
Given the strong demand outlook and resilient margins, Emkay has modelled volume, revenue, and EPS CAGR of 12%, 15%, and 16%, respectively, over FY26-29E.
Brokerage firm ICICI Securities also maintained a 'buy' call and raised the target price to ₹12,650 from ₹12,000.
As per experts, charts and technical indicators are in favour of the stock to see an uptrend in the near future. However, a sharp rally may trigger some profit booking, but a dip may be considered an opportunity to buy the stock.
Vipin Kumar, AVP-Research at Globe Capital Market, pointed out that Bajaj Auto stock is moving north in a higher-highs and higher-lows formation while holding strong above its key short-term as well as long-term moving averages. The rise in prices is well-supported by strong financial performance.
"As per Kumar, the current chart structure points toward further upside, targeting the ₹12,200– ₹12,300 spot range (its previous all-time high). Any dip down to the ₹10,400– ₹10,700 spot zone should be considered a fresh buying opportunity. Hence, we suggest investors hold existing long positions and wait for some dips to add fresh long positions for a medium to long-term perspective," said Kumar.
Aditya Thukral, Founder and Analyst of AT Research and Risk Managers, pointed out that Bajaj Auto has been in a long-term uptrend with the formation of higher highs and higher lows, and trading within the rising channel where the supports are placed around ₹10,200 and resistances around ₹11,700.
The stock is trading above all the major EMA’s, which are sloping higher. The 14-day RSI has moved into the overbought zone, and a cool-off in RSI would be needed to further attract buying interest.
Original Article
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