AI Summary
✦ ClarthaBajaj Auto is an automobile manufacturer and distributor serving India and international markets. Motorcycles and bikes anchor revenue, while three-wheelers, commercial vehicles, and electric two-wheelers broaden the portfolio. Parts, accessories, financing services, and exports provide additional revenue channels. India’s 28% July two-wheeler sales increase supports volume growth, contributing to 22.6% revenue growth and improving margins. Profit growth of 46.7% exceeded revenue growth, indicating operating leverage and better earnings conversion. ROE is unavailable, while debt-to-equity of 56.35 indicates leverage can amplify returns but increases financial sensitivity. At 27.7 times earnings, the shares appear fairly valued rather than discounted. The open question is whether electric two-wheeler adoption and export demand can sustain growth after the recent domestic sales surge.
Valuation Metrics
Trading 34.9% above historical median. Valuation is rising — currently in the strongly overvalued zone (z-score: +1.99). Confidence: 81%.
Live forward EPS implies next-12-month EPS of ₹472.41. Applying the stock's normalized valuation corridor produces a fair range of ₹8,900.20 to ₹10,515.85, with base value near ₹9,703.30 (-16.9% vs current price).
Live forward estimate anchored to the company's historical valuation corridor.
Forward EPS
₹472.41
Forward P/E
24.7x
Base Fair Value
₹9,703.30
Fair Range
₹8,900.20 - ₹10,515.85
Upside To Base
-16.9%
Estimate Source
Live forward EPS
Growth Estimate
+45.8%
5Y Average
15.72
Current
27.70
Overvalued
22.26
Undervalued
18.84
5Y Average
11.54
Current
20.36
Overvalued
15.24
Undervalued
6.14
5Y Average
2.51
Current
4.43
Overvalued
3.32
Undervalued
1.34
Peers & Comparison
Sector: Consumer Discretionary · Theme: Two Wheelers
| Company | Rev. Growth | Margin | P/E | vs Avg | 52W Perf. |
|---|---|---|---|---|---|
HERO MOTOCORP LIMITED HEROMOTOCOTwo Wheelers | +34.9% | 10.7% | 21.5x Undervalued | -40% vs avg | +25.5% |
HINDALCO INDUSTRIES LTD HINDALCOMetals - Aluminium | +32.1% | 5.5% | 14.3x Undervalued | -60% vs avg | +57.5% |
DR. REDDY S LABORATORIES DRREDDYPharmaceuticals | -5.6% | 10.0% | 29.2x Undervalued | -19% vs avg | -3.9% |
GRASIM INDUSTRIES LTD GRASIMCement | +10.5% | 2.8% | 46.2x Premium | +28% vs avg | +20.4% |
HCL TECHNOLOGIES LTD HCLTECHIT Services & Consulting | +3.0% | 13.0% | 21.1x Undervalued | -42% vs avg | -8.8% |
EICHER MOTORS LTD EICHERMOTTrucks & Buses | +31.5% | 23.2% | 38.0x Fair | +5% vs avg | +41.4% |
BSE LIMITED BSEStock Exchanges & Ratings | +64.0% | 48.9% | 52.3x Premium | +45% vs avg | +44.3% |
APOLLO HOSPITALS ENTER. L APOLLOHOSPHospitals & Diagnostic Centres | +18.1% | 7.7% | 66.0x Premium | +83% vs avg | +23.2% |
BAJAJ AUTO LIMITED trades at a discount (27.7x vs peer avg 36.1x), suggesting potential undervaluation relative to the Two Wheelers cohort. Peers include HERO MOTOCORP LIMITED, HINDALCO INDUSTRIES LTD, DR. REDDY S LABORATORIES — selected based on business model, industry classification, market cap similarity, and business theme alignment.
Financials
Real statement data for revenue, earnings quality, conversion, and balance-sheet coverage. Monetary values are shown in Rs crore.
Latest revenue
₹17.24K CrJun 2026Latest net profit
₹2.98K CrJun 2026Latest EPS
₹106.72Jun 2026Net margin
21.0%Jun 2026Performance
Bars show revenue and net profit. The line shows net margin.
- Revenue
- Net income
- Net margin %
Earnings
Revenue is shown in crores. EPS is rupees per share.
- Revenue
- EPS
Revenue to profit conversion
Bridge from operating numbers to profit for the latest reported period.
Latest reported period: Jun 2026
Debt level and coverage
Debt, cash and free cash flow compared on the same crore scale.
- Debt
- Free cash flow
- Cash & equivalents
Results
| Metric | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 10,310 | 10,777 | 12,114 | 11,485 | 11,928 | 13,127 | 12,807 | 12,148 | 12,584 | 14,922 | 15,220 | 16,006 | 17,244 |
| Expenses + | 8,356 | 8,644 | 9,684 | 9,178 | 9,513 | 10,475 | 10,226 | 9,697 | 10,103 | 11,870 | 12,060 | 12,683 | 13,648 |
| Operating Profit | 1,954 | 2,133 | 2,430 | 2,306 | 2,415 | 2,652 | 2,581 | 2,451 | 2,482 | 3,052 | 3,160 | 3,323 | 3,595 |
| OPM % | 19% | 20% | 20% | 20% | 20% | 20% | 20% | 20% | 20% | 20% | 21% | 21% | 21% |
| Other Income + | 346 | 361 | 346 | 349 | 321 | 173 | 335 | 381 | 431 | 369 | 281 | 459 | 512 |
| Interest | 12 | 7 | 12 | 23 | 21 | 16 | 14 | 17 | 14 | 14 | 3 | 5 | 4 |
| Depreciation | 84 | 88 | 88 | 91 | 94 | 96 | 100 | 111 | 111 | 112 | 112 | 114 | 118 |
| Profit before tax | 2,205 | 2,400 | 2,676 | 2,542 | 2,622 | 2,714 | 2,801 | 2,703 | 2,788 | 3,295 | 3,327 | 3,663 | 3,985 |
| Tax % | 24% | 24% | 24% | 24% | 24% | 26% | 25% | 24% | 25% | 25% | 25% | 25% | 25% |
| Net Profit + | 1,665 | 1,836 | 2,042 | 1,936 | 1,988 | 2,005 | 2,109 | 2,049 | 2,096 | 2,480 | 2,503 | 2,746 | 2,983 |
| EPS in Rs | 58.83 | 64.89 | 72.11 | 69.35 | 71.22 | 71.80 | 75.51 | 73.38 | 75.06 | 88.80 | 89.55 | 98.25 | 106.72 |
| Raw PDF |
All values in ₹ Crores unless otherwise stated. Source: Screener Master (Standalone).
Events Timeline
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation