Volume outperformance, steady results factored into Bajaj Auto's valuations

The company expects to outperform the 7-8 per cent growth in the domestic 2W industry on the back of growth in the 125cc+ segment and the launch of CNG motorcycle 'Freedom 125'

Bajaj Auto reported steady results in Q1FY25, with revenue surging 16 per cent year-on-year (Y-o-Y), operating profit registering a growth of 24 per cent Y-o-Y, and margins swelling 20.2 per cent. The profitability was aided by 50 basis points (bps) on the accrual of PLI benefits.

The domestic prospects for two-wheelers are healthy, though the response to the newly launched CNG motorcycle is a key monitorable. The management guidance is for gradual exports recovery and there's a need to build the Triumph brand awareness.

Revenue grew 16 per cent Y-o-Y to Rs 11,930 crore, in line with