CLSA lifts Bajaj Auto target to Rs 12,346 on GST, 125cc and export outlook
CLSA raised its Bajaj Auto target price from Rs 12,068 to Rs 12,346, citing expected GST-led demand support from October, premium motorcycle momentum, two planned 125cc launches and export upside from a weaker rupee.
What happened
CLSA raised Bajaj Auto’s target price to Rs 12,346, expecting GST cuts from October, premium motorcycle demand, 125cc launches and export growth aided by a
Key facts
- CLSA target price raised to Rs 12,346 from Rs 12,068
- FY27 and FY28 EPS estimates raised by 3%-4%
- Second-highest target among 49 Bloomberg-tracked analysts
- Two new 125cc brands planned
Why this matters
The bullish export and 125cc-growth thesis reinforces the strategic value of expanding differentiated mid-segment products and export-market partnerships.
What to watch
- Confirmation of GST rate or tax-structure changes and the date of implementation.
- Monthly domestic motorcycle registrations and wholesale-retail divergence.
- 125cc launch dates, ex-showroom pricing, initial booking data and competitor discounting.
- Export volume recovery in Africa, Latin America and South Asia.
- Rupee depreciation that improves export realizations without materially increasing imported-component costs.
- Margin commentary on discounts, commodity inputs and production utilization.
- Track festive-season dealer dispatches, retail registrations and inventory days after October.
- Assess launch timing, pricing and booking traction for the two planned 125cc motorcycles.
- Monitor premium motorcycle mix, especially KTM/Triumph-related volumes and realization trends.
- Watch export shipments by region alongside INR movement versus the dollar and major emerging-market currencies.
- Compare subsequent consensus EPS revisions with CLSA's 3%-4% FY27-FY28 upgrade.