Bajaj Auto, Hero MotoCorp, Ola Electric hit 52-week lows; here's why

These two-wheeler makers' stocks have plunged between 40 per cent and 66 per cent from their respective 52-week highs

Shares of two-wheeler companies Bajaj Auto, Hero MotoCorp and Ola Electric Mobility have hit their respective 52-week lows, falling by up to 6 per cent on the BSE in Monday’s intra-day trade amid heavy volumes. These stocks have plunged between 40 per cent and 66 per cent from their respective 52-week highs.

 

Among the individual stocks, shares of Ola Electric hit a new low of Rs 53.71, as they slipped 6 per cent on the BSE in intra-day trade on the back of heavy volumes. The average trading volumes on the counter more than doubled with a combined 26.68 million equity shares changing hands on the NSE and BSE. 

 

 

With today’s fall, the stock is trading 29 per cent below its issue price of Rs 76 per share. It has corrected 66 per cent from its record high level of Rs 157.53 touched on August 20, 2024. Ola Electric made its stock market debut on August 9, 2024.

 

Ola Electric is a leading electric vehicle (EV) manufacturer in India, specialising in the vertical integration of technology and manufacturing for EVs and their components, including battery cells. 

 

According to a Bloomberg report, Ola Electric is laying off more than 1,000 employees and contract workers in an effort to curb rising losses. The layoffs come as SoftBank-backed Ola Electric grapples with multiple challenges. The company’s net loss widened to Rs 564 crore in the December 2024 quarter, up from Rs 376 crore in the same period the previous year.

 

The company recently announced the renegotiation of its contracts with its vehicle registration agencies, a move that temporarily affected registration numbers on the VAHAN portal during February 2025. The negotiations aim to reduce costs and streamline the registration process.

 

Meanwhile, backed by a strong S1 portfolio and sales-and-service network of 4,000 stores across the country, Ola Electric sold more than 25,000 units in February with a market share of over 28 per cent, cementing its market leadership in the EV 2W segment.

 

Shares of Bajaj Auto hit a fresh 52-week low of Rs 7,682.75, down 3 per cent on the BSE in intra-day trade after it reported a 2 per cent year-on-year (YoY) rise in its total sales at 352,071 units in February 2025. The company had sold a total of 346,662 units during the same month last year.

 

In the past one month, the stock has underperformed the market by falling 14 per cent. In comparison, the BSE Sensex and BSE Auto indices are down 5.3 per cent and 12 per cent, respectively.

 

Bajaj Auto reported a 14 per cent YoY fall in domestic two-wheeler sales at 146,138 units in February. The company had sold 170,527 two-wheelers in the domestic market a year ago. The two-wheeler exports, however, jumped 23 per cent YoY at 153,280 units during the month.

 

Bajaj Auto management in its Q3 earnings call highlighted 2W industry growth in the range of 6-8 per cent in FY25, with increasing green shoots in the export markets. However, owing to a below-par market share performance in the domestic 2W (YTD FY25 Vahan retail market share down 62bps YoY) segment, and softening demand for its CNG bike, analysts at Elara Capital downgrade FY26E-27E EPS by 6-7 per cent.

 

Shares of Hero MotoCorp were down 2 per cent to Rs 3,616.90, hitting its fresh 52-week low on the BSE in intra-day trade today. The stock has corrected 42 per cent from its 52-week high level of Rs 6,245 touched on September 24, 2024.

 

Hero MotoCorp has reported a 17 per cent YoY decline in its total sales at 388,068 units in February, against 468,410 units sold in the year ago period. The company’s domestic two-wheeler sales were down 20 per cent YoY at 357,296 units in February.  The two-wheeler exports, however, jumped 33 per cent YoY at 30,772 units during the month.

 

Analysts at Axis Securities said they are monitoring (1) Hero’s roadmap in the EV product portfolio, including investments in Ather, the ramp-up of VIDA V2, and the launch of the sub-Rs 1 lakh Vida V2 Lite that caters to the mass market; (2) Strategy in the mid-weight motorcycle segment amidst growing competition; (3) Expansion into new international markets. 

 

Additionally, government initiatives to enhance rural income, higher disposable income (due to tax cuts announced in the recent Union Budget), and the marriage season are expected to drive the 2W industry's growth, benefiting Hero, particularly in the entry and 125cc segments, the brokerage firm said in the company's Q3 results update.

 

Meanwhile, with recovery in export volumes, the industry is well poised to record near double digit volume growth in FY25E, thereby handsomely outperforming other vehicle categories. It is also expected to benefit from rationalisation of personal income tax regime for FY26E, with industry players projecting a volume growth of ~8-10 per cent in FY26E, ICICI Securities said in a note.