Bajaj Auto Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Oct 10
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by KarNivesh | 10 October, 2025
Bajaj Auto Limited, one of India’s leading two- and three-wheeler manufacturers, continues to demonstrate strong financial and strategic growth. Headquartered in Pune, the company has evolved into a global mobility leader with operations across more than 75 countries. With a current market capitalization of ₹2,42,556 crores and share price of ₹8,679.50, Bajaj Auto achieved record-breaking results in FY2024, reporting revenue of ₹44,685 crores, marking a 23% year-on-year growth and maintaining robust profitability.
Founded in 1945, Bajaj Auto’s transformation is anchored in innovation, export excellence, and premium product strategy. The company’s major FY2024 milestones include record revenue and profit, the successful partnership with Triumph Motorcycles, expansion of its electric scooter brand “Chetak,” and the introduction of “GoGo” electric three-wheelers. Its financial arm, Bajaj Auto Credit Limited, was launched in January 2024 to boost vehicle financing accessibility.
Operating within India’s rapidly expanding economy-projected by the IMF to grow at 6.5% annually in FY2025–FY2026-the automobile industry benefits from rising rural demand, lower steel prices, and RBI’s rate cuts, which together strengthen consumer spending. Bajaj Auto commands an 18.2% market share in the Indian two-wheeler sector, facing competition from Hero MotoCorp (30%) and TVS Motors (19%). However, Bajaj maintains a leadership position in the premium motorcycle segment (125cc and above) with 26% share and dominates the ICE three-wheeler market with 77.9% share.
The company’s key brands-Pulsar, KTM, Husqvarna, Triumph, and Chetak-drive growth across multiple consumer segments. Pulsar alone recorded sales exceeding 1.4 million units in FY2024, growing 37% year-on-year. In premium motorcycles, KTM and Triumph models have seen rapid acceptance, while Chetak electric scooters tripled sales to 1.16 lakh units, making Bajaj the #3 player in India’s EV two-wheeler space. The GoGo electric three-wheeler brand secured 36% EV market share within two months of launch.
Financially, Bajaj Auto exhibits exemplary strength with a debt-to-equity ratio of just 0.27, free cash flow of ₹6,600 crores, and cash reserves of ₹16,386 crores as of March 2024. The company generated ₹7,478 crores in operating cash flow, reflecting excellent liquidity management. Return ratios remain industry-leading-ROE at 20.8% and ROCE at 27.1%-supported by a high-margin, asset-light business model. Dividends worth ₹210 per share and buybacks worth ₹8,900 crores underscore management’s shareholder commitment.
Governance remains a hallmark of Bajaj Auto’s success. Under the leadership of Managing Director Rajiv Bajaj, the firm’s transparent corporate structure and independent board uphold the Bajaj Group’s tradition of integrity. The Chakan plant’s “World Class TPM Achievement” award further demonstrates operational excellence. ESG initiatives include renewable energy adoption (37 MW solar power through vendors) and responsible supply chain practices.
Exports contribute 32% of total revenue (₹14,449 crores), with Bajaj holding the top position in 9 of 12 key global markets across Latin America, Africa, and the Middle East. Its strategic alliances and growing EV portfolio will drive future expansion.
Despite intense market competition and evolving regulatory norms, Bajaj Auto’s focus on premiumization, electrification, and financial prudence ensures sustainable growth. With analysts setting a target price of ₹9,261-indicating 14% upside-Bajaj Auto stands well-positioned to lead India’s next phase of mobility transformation while maintaining strong profitability and global competitiveness.
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