Noida, May 7 (APAC Media): Shares of Bajaj Auto rose nearly 3% on Thursday to touch a fresh 52-week high after the company reported robust fourth-quarter earnings and announced a Rs 5,633 crore share buyback along with a strong dividend payout.
Shares of Bajaj Auto gained as much as 2.65% to Rs 10,773 on the BSE, while on the NSE the stock rose 2.48% to Rs 10,584 during intraday trade at 10:58 AM.
The stock advanced to an all-time high in early trade as investors reacted positively to the motorcycle maker’s stronger-than-expected profitability, recovery in export demand and robust shareholder return initiatives.
Bajaj Auto reported a standalone net profit of Rs 2,746 crore for the quarter ended March 31, marking a 34% year-on-year increase, supported by strong demand in both domestic and export markets, an improved product mix and higher operating margins. Revenue from operations rose 32% year-on-year to Rs 16,006 crore.
Bajaj Auto Q4 Results: Cons PAT Climbs 48% YoY to Rs 3,492.21 Crore
“The board has approved a buyback of up to 4,694,000 fully paid-up equity shares of the company, each having a face value of Rs 10 and representing up to 1.68% of the total paid-up equity share capital, at a price of Rs 12,000 per share payable in cash, for an aggregate amount not exceeding Rs 5,633 crore,” Bajaj Auto said in a BSE filing.
The company’s board approved a buyback of up to 46.94 lakh equity shares at Rs 12,000 apiece through the tender route, offering a premium over the previous market price. The total size of the buyback is Rs 5,633 crore.
“We forecast a 10% volume CAGR over FY26–FY28, driven by 8% growth in the domestic market and 12% growth in exports, with domestic two-wheeler market share expected to improve from 10.8% to 11.2%, supported by new product launches across the Pulsar, KTM and Triumph brands; a new 125cc affordable motorcycle; and continued expansion of the EV portfolio with additional launches likely in the near term,” according to a Nuvama report.
“We retain a ‘BUY’ rating with a revised target price of Rs 11,600, supported by a strong volume growth outlook, improving market share, and healthy return ratios,” Nuvama said.
The company said demand remained strong across key segments during the quarter, while its electric scooter brand Chetak reported its highest-ever quarterly sales performance.
“Q4 EBITDA surged 36% year-on-year to Rs 33.2 billion, slightly above estimates, prompting an upward revision in earnings estimates,” Nuvama added.
“The board of directors has recommended a dividend of Rs 150 per equity share (1,500%) on a face value of Rs 10 each for the financial year ended March 31, 2026. If approved by shareholders at the upcoming Annual General Meeting, the dividend will be credited or dispatched on or around July 24, 2026,” the company said in its filing.
Bajaj Auto shares were among the top gainers on the benchmark indices during morning trade.
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