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Bajaj Auto Shares Slide on Weak September Sales
Bajaj Auto makes motorcycles and other vehicles.
Its shares fell after September sales were weaker than investors expected.
Sales of its motorcycles in India dropped about 12% from a year earlier.
Investors are worried that competitors such as Honda, Hero and TVS are gaining more customers.
However, Bajaj Auto’s exports grew strongly during the first half of the financial year.
Its three-wheeler sales also increased in September.
An expert said some dealers may have reduced their inventories rather than seeing demand disappear completely.
The Dussehra and Diwali shopping season could improve sales in October and November.
The stock may still struggle if Bajaj continues losing market share in India.
Bajaj Auto shares fell nearly 8% intraday after the company reported weak September sales.
Domestic sales declined 9% year over year, while domestic two-wheeler sales fell nearly 12%.
The stock recovered from its low and was down 5.93% at ₹10,216 on the BSE at 12:40 p.m.
Analyst Naren Agarwal said strong exports, three-wheeler growth and overall first-half volume growth show the company is not fundamentally broken.
Dussehra and Diwali demand, GST support and rural cash could aid sales, but continued domestic market-share losses may limit a stock rebound.
- Who
- Bajaj Auto, its investors and analyst Naren Agarwal.
- What
- Bajaj Auto shares fell sharply after weak September domestic sales data.
- Where
- Bajaj Auto is based in Pune, and its shares traded on the BSE.
- When
- Thursday, following the release of September sales figures; potential recovery is expected to be assessed during October and November.
- Why
- Domestic two-wheeler sales declined and the company appeared to be losing momentum and market share relative to some competitors.
Reasons for Caution
Reasons for Recovery
Festive-season outlook
Reasons for Caution
A festive-season improvement may not be enough to reset the stock if Bajaj Auto continues losing domestic market share to Honda, Hero and TVS.
Reasons for Recovery
Dussehra and Diwali demand, GST-cut support, rural cash after harvest and strong festive activity could lift industry sales in October and November.
Interpretation of weak sales
Reasons for Caution
The sharp domestic two-wheeler decline missed market expectations and indicates weaker momentum than some peers.
Reasons for Recovery
Higher Vahan registrations in September suggest the wholesale decline may partly reflect dealer destocking rather than a collapse in customer demand.
Overall company performance
Reasons for Caution
Investors are pricing in the risk that weak domestic performance will persist, contributing to the stock’s decline.
Reasons for Recovery
Strong first-half volumes, 47% export growth and September three-wheeler growth indicate that Bajaj Auto’s broader business remains resilient.
Key facts
- Intraday decline
- Nearly 8% during Thursday trading
- Price at 12:40 p.m.
- ₹10,216 per share, down 5.93% on the BSE
- September domestic sales
- Down 9% year over year
- September domestic two-wheeler sales
- Down nearly 12% to about 2.40 lakh units
- First-half total volumes
- Up 24% to 29.87 lakh units
- First-half exports
- Up 47%
- September three-wheeler sales
- Up 9%
Quotes
Naren Agarwal
CEO of Wealth1 and the market expert quoted in the article
“The stock’s 6–7% reaction is the market pricing that miss, not the 5% headline.The split matters. H1 FY27 is still strong: total volumes up 24% to 29.87 lakh units, exports up 47%. Three-wheelers grew 9% in September and remain a solid profit pool. So the company is not broken.”
livemint.com
“Domestic two-wheelers, the line the street watches most closely into festivals, dropped 12% to about 2.40 lakh units. That missed estimates-the market was looking for closer to 11–12% total growth and higher two-wheeler volumes.”
livemint.com
Sources
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