The leading manufacturer of bike Qutes & electric 3-wheeler company stock rose 6 percent to hit its new 52-week high of Rs 7,420 per share from its previous close of Rs 6,985 after the company announced the buyback of the shares.
According to the filing of Bajaj Auto Ltd, the company board of Directors has approved a proposal to buy back up to 40 Lakhs shares for Rs 10,000 per share for a total consideration of Rs 4,000 crores.
The buyback price of Rs 10,000 per share is 34 percent higher than the current market price of Rs 7,420 per share.
Looking at the company financials, their net revenue increased by 6 percent year over year, from Rs 10,203 crore in Q2FY23 to Rs 10,838 crore in Q2FY24. Their revenue rose by 5 percent sequentially from Rs 10,312 crore in Q1FY24 to the current levels.
In addition, the company’s net profit rose by 17 percent year over year, from Rs 1,719 crores in Q2FY23 to Rs 2,020 crores in Q2FY24. Their profit increased by 22 percent on a quarterly basis from Rs 1,644 crore in Q1FY24 to the current levels.
The company is a large cap with a market capitalization of Rs 2,02,000 crores. The share price of the company has risen by 44 percent in the last six months and 95 percent in the last year.
Bajaj Auto Ltd company has a low price-to-earnings ratio of 28 compared to its peers, with zero debt, a return on equity of 20 percent, a return on capital employed of 26 percent, and a net profit margin of 16 percent.
The promoter owns 55 percent of the company, the general public owns 22 percent, foreign institutional investors own 14 percent, and domestic institutional investors own 9 percent.
Bajaj Auto Limited is an Indian manufacturer of two-wheelers, three-wheelers, and quadricycles. The Company is in the business of developing, manufacturing and selling automobiles such as motorcycles, commercial vehicles, electric two-wheelers, and parts.
Written by Sriram KV
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