Bajaj Auto Share Price Slumps On Lackluster Wholesales In October

Bajaj Auto Ltd.'s share price fell during morning trade on Monday as its domestic sales declined, while total sales showed modest growth on account of an increase in exports in its October wholesale numbers. Wholesale numbers are a record for dispatches to dealerships from the factory floor.

The automaker reported that its total sales rose 2% from a year ago to 4,79,707 units for October 2024, compared to 4,71,188 units during the same month last year. However, a surge in exports, which rose by 24% year-on-year to 1,75,876 units, largely drove this growth. In contrast, domestic sales fell 8% year-on-year to 3,03,831 units in October.

Bajaj Auto sold 4,14,372 two-wheelers in October, up 2% year-on-year, while commercial vehicle sales touched 65,335 units, representing 4% growth from a year ago.

Despite the overall positive outlook in exports and two-wheeler sales, there was a decline in domestic demand.

Rakesh Sharma, the executive director of Bajaj Auto, asserted that the sales outcome in October was a remarkable success. He did acknowledge the challenges in the domestic market, saying the run-up to Dussehra was slow, but the last couple of weeks were smashing.

Bajaj Auto said retail sales for 125-cc motorcycles were up 20%, and overall retail sales increased by 11–12% during this period. Furthermore, the sale of over 2 lakh Pulsar motorcycles demonstrated strong demand for specific models.

Shares of the company fell as much as 4.81% to Rs 9,401 apiece. The stock pared losses to trade 3.87% lower at Rs 9,494.15 apiece as of 10:36 a.m. This compares to a 1.59% decline in the NSE Nifty 50 index.

The stock has risen 75.59% in the last 12 months. Total traded volume so far in the day stood at 2.0 times its 30-day average. The relative strength index was at 28.

Out of 47 analysts tracking the company, 20 maintain a 'buy' rating, 11 recommend a 'hold', and 16 suggest a 'sell', according to Bloomberg data.