Bajaj Auto hits 52-week high, extends gain for 5th straight day; here’s why?

The auto stock has surged over 9% in the last five sessions from its September 9 closing price of ₹10,847.6 apiece on the NSE.

Bajaj Auto shares have extended the gaining streak amid the positive momentum seen in auto stocks after the Union Cabinet approved the ‘PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme' on September 11. The scheme has an outlay of ₹10,900 crore for a period of two years, according to an official release.

The scheme includes subsidies and demand incentives worth ₹3,679 crore to encourage the use of electric vehicles, such as two-wheelers, three-wheelers, ambulances, and trucks. The scheme also aims to support 24.79 lakh electric two-wheelers, 3.16 lakh electric three-wheelers, and 14,028 e-buses.

The scheme also proposes installing 22,100 fast chargers for electric four-wheelers and 1,800 fast chargers for e-buses. Additionally, 48,400 fast chargers will be installed for electric two-wheelers and three-wheelers.

In the month of August, Bajaj Auto’s sales grew 16% year-on-year to 3,97,804 units compared to 3,41,648 units in the same month a year ago. The company’s total vehicle sales for the April to August period of 2024 also grew by 10% to 18,54,029 units compared to 16,88,802 units in the same period of the previous year.

Bajaj Auto shares have rallied over 144% in the past one year. The Bajaj Group stock has Year-To-Date (YTD) returns of more than 73%, while rising over 40% in the past six months. The stock has gained more than 21% in the past one month.

Bajaj Auto shares closed flat, up 0.094% at ₹11,734 apiece on the NSE.