Bajaj Auto’s Strong Q3
- 29th January 2025
Aaj Ka Bazaar
The US market ended higher after seeing considerable weakness in the previous session, stocks showed a strong return to the upside during trading on Tuesday. The tech-heavy Nasdaq led higher after posting a particularly steep loss on Monday. In economic releases, durable goods orders fell 2.2% in December, while consumer confidence declined for the second month in January, separate reports showed. Buying interest was somewhat subdued as investors looked ahead to the Federal Reserve’s monetary policy announcement on Wednesday. The Fed is almost universally expected to leave interest rates unchanged, but investors will likely pay close attention to the accompanying statement for clues about the rate outlook. In Asia, Japanese, Australian and New Zealand market rose this morning while most other markets were closed for the Lunar New Year holidays. Indian market are opening a tad higher on Wednesday, mirroring firm cues from global markets and amid hopes for a rate cut by the RBI next week. However, the mood is still downbeat among participants, with Q3 results from India Inc. either on expected lines or below market expectations. The focus has shifted to two significant events – the FOMC meeting scheduled tomorrow and the Union Budget 2025 on 1st February.
Markets Around Us
BSE Sensex –76,176.98 (0.36%)
Nifty 50 – 22,026.00 (0.30%)
Bank Nifty – 48,941.10 (0.15%)
Dow Jones – 44,874.45 (0.05%)
Nasdaq – 19,719.11 (1.95%)
FTSE – 8,533.87 (-0.12%)
Nikkei 225 – 39,268.83 (0.75%)
Hang Seng – 20,255.11 (0.00%)
Sector: Automobile
Bajaj Auto Ltd. Q3FY25 Result
Bajaj Auto reported a decent quarterly performance, which was largely anticipated by the market, given the decline in domestic 2W sales during the quarter and slugged production. The buoyancy in the topline was supported by 3W volumes and increased export contribution; however, a weaker product mix was the main pressure point during the three-month period. An improved ASP, with a 6% YoY growth, was one of the key pillars that enabled the company to help maintain its operational margins. The benefits of premiumisation largely reflected its products like Speed 400 and Duke 200/250, clocking in the highest-ever retail sales, with the expansion of its touchpoints boding well for the company. The company also experienced a five-fold surge in its e3W volumes, with market share expanding to a new quarter high (3x YoY), supported by an extended network from 600 to over 850 touchpoints. Chetak maintained its robust momentum, with volumes growing by ~2.5x YoY and an exit market share of 25% (+1100 bps).
Why it Matters:
The company had mentioned improvement in its margin structure in the previous quarter’s concall, which was expected to materialize post the launch of the upgraded Chetak in November. Follow-up on the commentary would be key to gauge the profitability of its EV portfolio. Moving forward, management’s comments on the CNG portfolio pipeline, production expansion plans, and margin improvement guidance will be key areas to watch.
NIFTY 50 GAINERS
BAJAJ-AUTO – 8781.35 (4.56%)
INFY – 1860.40 (1.68%)
BEL – 261.80 (1.37%)
NIFTY 50 LOSERS
TATACONSUM – 950.60 (-1.41%)
NTPC – 316.40 (-1.80%)
DRREDDY– 1179.60 (-1.51%)
Sector: Energy
Suzlon Surges 5% on 91% Profit Growth
Suzlon Energy shares surged 5% after the company reported a strong 91% jump in net profit for Q3 FY25, reaching ₹387 crore compared to ₹203 crore last year. Revenue also saw a sharp rise, growing 91% to ₹2,969 crore. The company achieved record quarterly deliveries of 447 MW, supported by a capacity ramp-up to 4.5 GW, though total installations remained lower than the previous year. Suzlon’s order book hit an all-time high of 5.5 GW, ensuring strong revenue visibility over the next two years. Nuvama upgraded the stock to ‘buy’ with a ₹60 target, citing valuation comfort and growth potential in India’s renewable energy sector. Morgan Stanley maintained an ‘overweight’ rating with a ₹71 target, expecting industry challenges like land acquisition to ease by FY26. Suzlon also plans ₹350-400 crore capex for new blade manufacturing in MP and Rajasthan, strengthening future production capacity.
Why it Matters:
Suzlon’s 91% jump in profit and revenue highlights its strong growth in the renewable energy sector. With a record 5.5 GW order book and ₹350-400 crore planned expansion, the company is well-positioned for future growth.
Around the World
Asian stocks moved higher on Wednesday as the sharp selloff in tech stocks due to concerns over DeepSeek, a new Chinese AI model, started to ease. Australian stocks led the gains, hitting a nearly two-month high after lower-than-expected inflation raised hopes of an interest rate cut by the Reserve Bank of Australia. Trading volumes were low due to Lunar New Year holidays in China, Hong Kong, Taiwan, Singapore, and South Korea. U.S. markets had rebounded overnight, but futures dipped ahead of the Federal Reserve’s policy decision. Investors are also watching key earnings reports from Microsoft, Tesla, ASML, and Alibaba. Japanese tech stocks, which had been hit hard by DeepSeek’s launch, saw some recovery, with Sony rising over 4% after announcing a new CEO. Meanwhile, Australia’s ASX 200 gained 0.9% on rate cut hopes, while India’s Nifty 50 struggled near a seven-month low.
Option Traders Corner
Max Pain
Nifty 50 – 23,100
Bank Nifty – 49,300
Nifty 50 – 22,984 (Pivot)
Support – 22,830, 22,703, 22,550
Resistance – 23,110, 23,264, 23,391
Bank Nifty – 48,854 (Pivot)
Support – 48,461, 48,056, 47,663
Resistance – 49,259, 49,652, 50,0075
Did you know?
2 Million Indian Travelled to USA
The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.
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