Bajaj Auto shares tumble 5% on muted sales in October; stock slips 19% in one month

Bajaj Auto sold 4,79,707 units in October compared to 4,71,188 units in October 2023, recording a growth of 2%. 

Total sales comprised domestic sales of 3,03,831 units (down 8% YoY) and exports of 1,75,876 units (up 24% YoY).

The company sold 4,14,372 two-wheeler units (up 2% YoY) and 65,335 commercial vehicle units (up 4% YoY) in October 2024.

The management after the result declaration indicated weak festival season sales, which unnerved market participants, as per analysts.

Further, a miss in margins in the Q2 result added to the investors' woes, the analysts said further. 

Bajaj Auto reported a net profit of ₹2,005 crore for the July-September period, a growth of 9.2% compared to the same period last year. The profit figure was after accounting for a one-time taxation impact of ₹211 crore due to the changes in the LTCG regime announced in the Union Budget.

Revenue for the quarter increased by 21.8% year-on-year to ₹13,127.5 crore.

The top and bottom line figures were more or less in line with analysts' estimates. 

However, the gross margin disappointed market participants. 

On a year-to-date (YTD) basis, the stock has given over 41% returns, while in the past 12 months, the share price has jumped over 75%. However, in the past one month, the stock has fallen over 19%.