Bajaj Auto witnessed a substantial block trade on the National Stock Exchange (NSE), highlighting significant institutional activity in the automobile manufacturer's shares. The transaction represents a notable movement in the company's stock on the exchange.

Block Trade Details

The block trade executed on NSE involved substantial value and volume, indicating major institutional participation. Such transactions typically occur when large investors or institutions need to buy or sell significant quantities of shares without impacting the regular market price.

Market Significance

Block trades represent off-market transactions that allow large volumes to be traded without affecting the regular market dynamics. The execution price of ₹9,816.00 per share reflects the institutional demand for Bajaj Auto shares at this price level.

Transaction Impact

The block trade involving approximately 31,020 shares demonstrates the liquidity available in Bajaj Auto's stock and the interest from institutional investors. Such transactions are typically executed by mutual funds, insurance companies, foreign institutional investors, or other large stakeholders looking to adjust their portfolio positions.

The successful execution of this ₹30.45 crore transaction on NSE indicates the continued institutional confidence in the automobile sector and Bajaj Auto's market position specifically.

Bajaj Auto shares gained as much as 3% to hit a 52-week high of ₹9,783.50 on Tuesday, January 6, after the automaker's December sales came in largely in line with expectations. The stock surge followed strong export performance that continues to drive the company's growth momentum.

December Sales Performance

Total volumes rose 14.4% year-on-year, marginally below estimates of around 15%. The performance was characterized by a stark contrast between domestic and export markets, with domestic demand remaining a drag while exports continued their robust trajectory.

Two-wheeler sales grew 14% year-on-year to 3.10 lakh units, with domestic volumes up 3% and exports rising 24% to 1.78 lakh units. Three-wheeler sales increased 17% year-on-year to 59,456 units, showing strength across product categories.

Nine-Month Performance Trends

For the April to December period, the company's performance reflected similar patterns with exports compensating for domestic market challenges.

Emkay Global Upgrade and Target Revision

Following the December sales update, Emkay Global upgraded Bajaj Auto to 'Buy' from 'Add' and raised its price target to ₹11,100 per share from ₹9,500, implying an upside of around 17%. The brokerage said the upgrade was driven by EPS upgrades of around 4% for FY27 and 9% for FY28.

Emkay highlighted that Bajaj Auto offers an attractive risk-reward proposition at current levels, supported by several key factors:

• Strong export trends across Latin America and Asia
• Planned launch of refreshed Pulsar range in CY26
• Expected healthy 14% EPS CAGR over FY26 to FY28
• Currency depreciation-led tailwinds supporting margins

Strategic Business Developments

The brokerage noted that Bajaj Auto's overall domestic two-wheeler market share appears to have bottomed out, with early signs of recovery emerging. Export momentum remains robust, led by strong performance in Latin America and Asia markets.

In the electric vehicle segment, Bajaj Auto's electric three-wheeler portfolio has scaled up meaningfully, overtaking Mahindra and Mahindra to become the market leader. The company has already achieved EBITDA breakeven in this segment, demonstrating the viability of its electric mobility strategy.

Emkay also highlighted that a gradual turnaround in KTM operations could provide incremental upside over the medium term, adding another growth catalyst to the company's portfolio.