Bajaj Auto Buy Recommendation 2025
If you are looking for a high-quality, large-cap auto stock with strong fundamentals, consistent dividends, and a clear export and EV growth story, Bajaj Auto (BAJAJ-AUTO) is one of the best buy recommendations for 2025–2026. In this detailed analysis, we will cover
- Why Bajaj Auto is a strong buy right now
- Latest quarterly results, sales, and margins
- Technical setup and key support/resistance levels
- Analyst price targets and our own 12-month target
- Risk factors and what to watch
- Exact buy levels, stop loss, and target zones
This is not just another generic stock tip; this is a data-backed, institutional-grade buy recommendation that can help you build long-term wealth in the auto sector.
Bajaj Auto Buy Recommendation 2025: Why Bajaj Auto Is a Strong Buy in 2025
Bajaj Auto is not just a two-wheeler company; it is a global auto exporter, EV leader, and premium motorcycle player with a fortress balance sheet. Here’s why it deserves a strong buy rating:
- Market Leader in 3-Wheelers & Exports
- World’s largest 3-wheeler manufacturer with ~75% domestic market share.
- India’s largest exporter of 2-wheelers and 3-wheelers, with a strong presence in Africa, Latin America, and ASEAN.
- Exports now contribute ~40–45% of total volumes, giving it a natural hedge against domestic slowdowns.
- Premiumization & KTM/Triumph Play
- Strong portfolio in 125cc+ motorcycles (Pulsar, Dominar, Platina) with improving mix.
- Deep partnership with KTM and Triumph, giving access to high-margin premium bikes and global markets.
- This premium mix is driving industry-leading operating margins of 20%+.
- EV Push with Chetak & E-Rickshaws
- Chetak EV is gaining traction; volumes are growing and market share is rising.
- E-rickshaws and future EV 2-wheelers will add another growth leg.
- EV contribution is expected to rise from ~10–15% today to 25–30% in 3–5 years.
- Cash-Rich Balance Sheet & High Dividend Yield
- Net cash is on books worth over ₹25,000 crore, giving flexibility for capex, buybacks, and dividends.
- With a dividend yield of approximately 2.3% and a robust payout ratio, Bajaj Auto appeals to both income and growth investors.
- Strong Institutional & Analyst Confidence
- 66% of analysts have a Buy/Strong Buy rating on Bajaj Auto.
- The average 12-month price target is around ₹9,900–₹10,700, implying a 10–20% upside from current levels.
- Mutual funds and FIIs continue to hold and accumulate, signalling long-term conviction.
Bajaj Auto Buy Recommendation 2025: Bajaj Auto Q3 FY25 Results & Latest Fundamentals (Sep 2025)
Let’s look at the latest quarterly numbers to see if the growth story is intact.
Revenue & Profit Growth (Consolidated)
- Total Income (Q3 FY25):
₹16,310 crore (+19.6% YoY, +19.6% QoQ) - EBIT:
₹3,920 crore (+23.1% YoY) - PAT (Net Profit):
₹2,122 crore (+53.2% YoY) - EBIT Margin:
~24.0% (up from ~21.7% in Q3 FY24) - Net Profit Margin:
~13.0% (slightly down due to one-time items, but still healthy)
Key Takeaways:
- Revenue growth is strong, driven by both domestic and export markets.
- Margins are expanding due to better product mix (premium bikes, exports) and operating leverage.
- PAT growth is very healthy, showing that the company is not just growing sales but also profits.
Bajaj Auto Buy Recommendation 2025: Full Year FY25 (Apr–Mar 2025)—Strong TTM Numbers
- TTM Revenue:
~₹54,680 crore (+12% YoY) - TTM PAT:
~₹8,330 crore (+13% YoY) - TTM EPS:
~₹298 - ROCE:
~28%, ROE: ~23%—among the best in the auto sector.
Bajaj Auto Buy Recommendation 2025: Bajaj Auto Valuation: Is the Stock Overvalued?
Many investors ask, “Is Bajaj Auto too expensive at current levels?”
Let’s check the key valuation metrics (as of Dec 2025):
Metric Value Current Share Price ₹9,100–₹9,250 P/E (TTM) ~30.5x P/B ~7.2x Dividend Yield ~2.3% Market Cap: ~₹2.54 lakh crore
Interpretation:
- • A P/E of ~30.5x is on the higher side compared to the broader market, but justified given:
- Strong export franchise and global brand.
- Premium product mix and high margins.
- EV and KTM/Triumph growth story.
- P/B of ~7.2x is high, but Bajaj Auto has a very strong balance sheet with high ROE, so it trades at a premium.
- Dividend yield of ~2.3% is attractive for a large-cap auto stock.
Verdict:
Bajaj Auto is not cheap, but it is fairly valued for a high-quality, export-led, margin-rich auto stock. For long-term investors, the current valuation is acceptable if growth continues.
Bajaj Auto Buy Recommendation 2025: Analyst Price Targets & Our 12-Month Target
Here’s what analysts and institutions are saying:
- Nuvama:
Buy, Target ₹10,700 (20% upside) - Choice Equity Broking:
Buy, Target ₹12,483 (very bullish) - ICICI Securities:
Hold, Target ₹9,900 - Motilal Oswal:
Hold, Target ₹8,770
Consensus View:
- Average 12-month target: ₹9,900–₹10,700
- Upside potential: 10–20% from current levels
- Strong Buy / Buy ratings dominate the street.
Bajaj Auto Buy Recommendation 2025: Our Bajaj Auto Buy Recommendation & Target
Based on fundamentals, growth visibility, and technicals, we give a Strong Buy call on Bajaj Auto with:
- Buy Zone:
₹8,800–₹9,100 - Stop Loss:
₹8,400–₹8,500 (below key support) - 12-Month Target:
₹10,800–₹11,200 - Long-Term (2027–2030) Target:
₹13,000–₹16,000+ (multibagger potential)
Expected Returns:
- Short term (3–6 months): 8–12%
- Medium term (12 months): 15–20%
- Long term (3–5 years): 50–100%+ if execution remains strong.
Technical Analysis: Bajaj Auto Stock Chart Setup
Let’s now look at the technical picture to time the entry.
Bajaj Auto Buy Recommendation 2025: Key Levels (Daily Chart)
- Current Price:
₹9,100–₹9,250 - Immediate Support:
₹8,900–₹8,950 (25-day MA + recent swing low) - Strong Support:
₹8,400–₹8,500 (major demand zone) - Immediate Resistance:
₹9,400–₹9,500 (recent high) - Next Resistance:
₹9,800–₹10,000 (psychological + analyst target zone)
Bajaj Auto Buy Recommendation 2025: Trends & Indicators
- Trend:
Uptrend intact; price above 50-day, 100-day, and 200-day moving averages. - RSI:
~60–65 (bullish, not overbought) - MACD:
Positive crossover, supporting bullish momentum. - Volume:
Buying volumes are increasing on up days, a healthy sign.
Technical Verdict:
Bajaj Auto is in a bullish trend with scope to move towards ₹9,800–₹10,000 in the next 6–12 months. A breakout above ₹9,500 can accelerate the rally.
Bajaj Auto Buy Recommendation 2025: Bajaj Auto Sales Performance (Latest Data)
Sales numbers are critical for auto stocks. Here’s the latest:
- Domestic 2-Wheeler Sales (Sep 2025):
~3.5 lakh units (+8–10% YoY) - Export 2-Wheeler Sales:
~2.8 lakh units (+12–15% YoY) - 3-Wheeler Sales (Domestic + Export):
~1.2 lakh units (+10% YoY) - Chetak EV Sales: Growing steadily; market share improving in the premium EV segment.
Key Insight:
- Domestic demand is recovering, especially in rural and tier-2/3 cities.
- Exports remain strong, acting as a buffer against domestic cyclicality.
- EV volumes are still small but growing fast—a future growth driver.
Bajaj Auto Buy Recommendation 2025: Risks & What to Watch
No stock is without risk. Here are the key risks for Bajaj Auto:
- Domestic Demand Slowdown
- If rural demand weakens or competition intensifies, volumes and margins could come under pressure.
- Competition in Premium Segment
- Hero, TVS, and Royal Enfield are aggressive in 125cc+ bikes; pricing pressure is a risk.
- EV Execution Risk
- EV is capital-intensive; if Chetak and future EVs don’t scale fast, margins may suffer.
- Global Macro & Forex Risk
- As a major exporter, Bajaj Auto is exposed to currency fluctuations and global slowdowns.
- Valuation Risk
- At ~30x P/E, any earnings miss can lead to a sharp correction.
What to Monitor Quarterly:
- Revenue and PAT growth (YoY and QoQ)
- EBIT and net profit margins
- Export vs. domestic sales mix
- EV volumes and market share
- Capex and free cash flow
Bajaj Auto Buy Recommendation 2025: Bajaj Auto Buy Recommendation: Exact Strategy
Here’s a clear, actionable strategy for traders and investors:
For Long-Term Investors (Hold 2–5 Years)
- Buy Zone:
₹8,800–₹9,100 - Stop Loss:
₹8,400 (can be trailed higher once target is reached) - Target 1:
₹9,800–₹10,000 (6–12 months) - Target 2:
₹10,800–₹11,200 (12–18 months) - Long-Term Target:
₹13,000–₹16,000+ (2027–2030)
Allocation:
- Allocate 5–10% of your portfolio to Bajaj Auto if you are overweight on quality large caps.
- Use SIP in stock (buy in tranches) to average out entry price.
Bajaj Auto Buy Recommendation 2025: For Traders (Short to Medium Term)
- Buy:
On dips near ₹8,900–₹9,000 with a tight stop loss at ₹8,750–₹8,800. - Target:
₹9,500–₹9,800 - Stop Loss:
₹8,750 (strict) - Exit:
Book partial profits at ₹9,500 and trail the rest.
Bajaj Auto Buy Recommendation 2025: Why This Buy Call Is Different (Our Edge)
Many sites give generic “Buy Bajaj Auto” calls. Our recommendation is different because:
- We combine fundamentals (revenue, margins, ROE, ROCE) with valuation (P/E, P/B, dividend yield).
- We use technical analysis to define exact entry, stop loss, and target zones.
- We factor in analyst consensus and institutional activity (MF/FII holdings).
- We clearly state risks and what to watch, so you can manage your position actively.
This is not a “tip of the day”; this is a structured, institutional-style buy recommendation that you can use for long-term wealth creation.
Bajaj Auto Buy Recommendation 2025: How to Buy Bajaj Auto Shares (Step-by-Step)
If you are new to investing, here’s how to buy Bajaj Auto:
- Open a Demat & Trading Account
- Choose a low-cost broker (Zerodha, Groww, Upstox, etc.).
- Fund Your Account
- Transfer money from your bank to your trading account.
- Place the Order
- Go to “Buy” → Search for “BAJAJ-AUTO” (NSE) or “BAJAJ AUTO” (BSE).
- Select “Limit Order” and enter your buy price (e.g., ₹9,000–₹9,100).
- Set the quantity and place the order.
- Track & Manage
- Monitor quarterly results, sales, and technical levels.
- Book profits at target and trail stop loss.
Bajaj Auto Buy Recommendation 2025: Final Verdict: Strong Buy on Bajaj Auto
Bajaj Auto is a strong buy for 2025–2026. It offers:
- A powerful combination of exports, premium bikes, and EV growth.
- Industry-leading margins and ROCE/ROE.
- A cash-rich balance sheet and high dividend yield.
- A bullish technical setup with clear upside to ₹10,800–₹11,200 in 12 months.
If you are looking for a high-conviction, large-cap auto stock with multibagger potential, Bajaj Auto should be on your watchlist.
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Frequently Asked Questions (FAQs)
Q1. Is Bajaj Auto a good long-term investment?
Yes, Bajaj Auto is a good long-term investment if you can hold for 3–5 years. It has strong fundamentals, a global export franchise, and a clear EV + premium growth story.
Q2. What is the target price for Bajaj Auto in 2026?
Our 12-month target is ₹10,800–₹11,200. For 2026–2027, the target can be ₹13,000–₹16,000+ if growth continues.
Q3. What is the best buy price for Bajaj Auto?
Ideal buy zone: ₹8,800–₹9,100. Aggressive traders can buy near ₹9,000–₹9,100 with a stop loss at ₹8,750–₹8,800.
Q4. What are the risks in Bajaj Auto stock?
Key risks: domestic demand slowdown, competition in premium bikes, EV execution risk, and high valuation.
Q5. Should I buy Bajaj Auto now or wait for a dip?
If the price is below ₹9,100, it is a good entry. If it goes above ₹9,500, wait for a pullback to ₹9,000–₹9,200 before buying.
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Disclaimer
This is not investment advice. Stock markets are risky; do your own research or consult a SEBI-registered advisor before investing. Past performance is not indicative of future returns.
