Shares of Bajaj Auto fell sharply on November 4 as the company reported a decline in domestic sales for October. The stock dropped by 5%, positioning Bajaj Auto as the worst-performing stock on the Nifty 50. Despite a rise in exports, the dip in domestic sales influenced market sentiment, affecting the stock price. For those looking to invest in stocks, the latest data reveals how sales performance impacts stock trends.
Breakdown of domestic and export sales figures
Bajaj Auto's domestic sales declined by 8% year-on-year, with 3.03 lakh units sold in October, compared to 3.29 lakh units in the same month the previous year. However, export sales showed positive growth, with a 24% increase to 1.76 lakh units in October, up from 1.41 lakh units a year ago. Despite this export growth, the company's overall sales, totalling 4.79 lakh units, missed an industry estimate of 4.89 lakh units, impacting investor sentiment for those who invest in stocks.
Bajaj Auto's stock performance on the NSE
At 10:03 am, Bajaj Auto shares were trading at ₹9,475.95 on the National Stock Exchange (NSE). The stock's decline also impacted the Nifty Auto index, which fell by 0.6%. This downturn underscores how monthly performance metrics can influence stock prices and affect investment decisions for those who actively invest in stocks.
Managing Director's outlook on future sales growth
In a recent address, Bajaj Auto's Managing Director outlined an optimistic projection for the company's annual sales, estimating sales could reach 4.5 million units by the end of the financial year 2025. This forecast also included an anticipated increase in monthly exports, ranging between 1.7 lakh and 1.8 lakh units.
Additionally, with new models like the Pulsar 125 and increased production for other models, the company expects its total annual production to potentially reach around 47 million vehicles. This projection may interest those who invest in stocks, as the company's production plans could affect future stock performance.
Quarterly financials indicate revenue growth
For the second quarter of FY25, Bajaj Auto reported a 9% rise in standalone net profit, totalling ₹2,005 crore, up from ₹1,836 crore in the previous year. Revenue also showed a significant increase, rising by 22% to ₹13,127 crore compared to ₹10,777 crore in the same period the prior year. Although these results missed some market estimates, they provide insight into the company's recent financial progress, which can be a key consideration for individuals aiming to invest in stocks.
Company revises two-wheeler growth outlook
Bajaj Auto recently updated its growth expectations for the Indian two-wheeler market, adjusting its outlook to a modest 5% growth rate, at the lower end of its initial projection of 5-8%. This revised growth forecast highlights the company's cautious approach within a competitive market, which is notable information for investors considering whether to invest in stocks in the two-wheeler sector.
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