Auto stock hits 52-week high as Emkay raises target by 17% after December sales update

SYNOPSIS: Emkay upgraded Bajaj Auto to ‘buy’, raised its target to Rs. 11,100, citing EPS upgrades, strong exports, EV leadership, improving domestic share, and attractive valuations versus peers.

During Tuesday’s trading session, shares of a two- and three-wheeler manufacturer hit a new 52-week high at Rs. 9,782.75, as brokerage firm Emkay Global Financial Services raised its target price on the stock after the December sales update.

At 01:22 p.m., shares of Bajaj Auto Limited were trading in the green at Rs. 9,730 on BSE, up by more than 2 percent, compared to its previous closing price of Rs. 9,498.95, with a market cap of Rs. 2.71 lakh crores. The stock has delivered positive returns of over 10 percent in one year, and has gained by around 8 percent in the last one month.

December Sales 

In December 2025, Bajaj Auto reported healthy year-on-year growth across segments. Two-wheeler sales stood at 3,10,353 units, up 14 percent from 2,72,173 units in December 2024. Domestic two-wheeler sales rose 3 percent to 1,32,228 units, while exports jumped sharply by 24 percent to 1,78,125 units.

Commercial vehicle (CV) sales increased 17 percent YoY to 59,456 units. Domestic CV sales grew 9 percent to 37,145 units, while exports surged 32 percent to 22,311 units.

Overall, total vehicle sales (2-wheelers + CVs) rose 14 percent to 3,69,809 units in December 2025 – marginally below estimates of around 15 percent – compared with 3,23,125 units a year earlier. Domestic sales increased 4 percent to 1,69,373 units, while exports recorded a strong 25 percent growth to 2,00,436 units.

Brokerage Target & Outlook

Following the December sales update, Bajaj Auto received a more constructive view from Emkay Global Financial Services, which upgraded the stock to ‘buy’ from ‘add’ and raised its target price to Rs. 11,100 from Rs. 9,500. This implies a potential upside of around 17 percent from current levels, reflecting growing confidence in the company’s product mix and competitive positioning.

The upward revision is backed by higher earnings expectations, with Emkay upgrading EPS estimates by about 4 percent for FY27 and 9 percent for FY28. The brokerage has also factored in the value of Bajaj Auto Credit at Rs. 300 per share, valuing it at 2x FY28E price-to-book value, given the steady scale-up in operations. At current valuations, Emkay believes Bajaj Auto offers a favourable risk-reward, trading at roughly 24x one-year forward earnings, compared with TVS Motor at 38x and Eicher Motors at 32x.

According to the brokerage, Bajaj Auto’s outlook is supported by strong export momentum and the planned launch of a refreshed Pulsar range in CY26. Emkay expects the company to deliver a healthy EPS CAGR of around 14 percent between FY26 and FY28.

It also noted early signs of recovery in Bajaj Auto’s domestic two-wheeler market share, which now appears to have bottomed out. Export performance continues to remain robust, led by markets in Latin America and Asia, while currency depreciation-related tailwinds are likely to support margins.

On the EV front, Emkay highlighted that Bajaj Auto’s electric three-wheeler portfolio has scaled up meaningfully and has overtaken Mahindra & Mahindra to become the segment leader, with EBITDA breakeven already achieved. Additionally, a gradual recovery in KTM could offer incremental upside over the medium term, the brokerage added.

Financials & More

Bajaj Auto reported a marginal growth in revenue from operations, experiencing a year-on-year increase of around 19 percent, from Rs. 13,247 crores in Q2 FY25 to Rs. 15,735 crores in Q2 FY26. Likewise, its net profit increased during the same period from Rs. 1,385 crores to Rs. 2,122 crores, representing a rise of over 53 percent YoY.

Bajaj Auto Limited is engaged in the business of development, manufacturing and distribution of automobiles such as motorcycles, commercial vehicles, electric vehicles, etc. and parts thereof.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Auto stock hits 52-week high as Emkay raises target by 17% after December sales update appeared first on Trade Brains.