Introduction
Bajaj Auto Ltd. is one of India’s most iconic and respected automobile companies. Known for its two-wheelers and three-wheelers, the company has created market-defining brands like Pulsar, Dominar, Platina, and RE auto-rickshaws. As part of the prestigious Bajaj Group, it has a solid legacy, a strong balance sheet, and an expanding global footprint.
With a reputation for consistent performance, high profitability, and regular dividends, Bajaj Auto shares are considered a blue-chip stock by many investors. But is the stock still a good buy in 2025? How has the share price performed historically? And what does the future look like?
Let’s dive deep into the trends, key metrics, opportunities, and risks of Bajaj Auto’s share price.
Company Overview
- Name: Bajaj Auto Limited
- NSE/BSE Ticker: BAJAJ-AUTO
- Founded: 1945
- Headquarters: Pune, Maharashtra
- Market Cap (as of 2025): ₹2.4 lakh crore+
- Promoter Holding: ~54%
- Free Float: Widely held by institutions and retail investors
Bajaj Auto is the third-largest motorcycle manufacturer in the world and India’s largest exporter of two- and three-wheelers, present in over 70+ countries.
Bajaj Auto Share Price: Historical Performance
1. The Long-Term Growth
Over the past 15 years, Bajaj Auto’s share price has multiplied significantly, rewarding long-term investors with both capital appreciation and dividends.
- 2010: ~₹1,400 per share (adjusted for bonuses/splits)
- 2015: ~₹2,200
- 2020: ~₹3,100
- 2023: Crossed ₹4,500
- 2024: Touched ₹6,000
- 2025: Hovers around ₹7,800–₹8,000 levels
Despite market volatility, the stock has shown resilience and consistency, outperforming many peers in the auto sector.
Key Drivers Behind the Share Price Movement
1. Consistent Earnings and Margins
Bajaj Auto is known for maintaining high operating margins (18–20%), even during difficult times. It has a debt-free balance sheet, and its return on equity (ROE) consistently exceeds 20%, making it a favorite among value investors.
2. Dominance in Key Segments
- Pulsar and Dominar dominate the sports and premium segments.
- RE three-wheelers are market leaders in India and abroad.
- The company’s exports contribute over 40% of total sales, helping it hedge against domestic slowdowns.
3. Strong Export Base
Bajaj Auto’s wide export network to Latin America, Africa, and Southeast Asia plays a critical role in revenue diversification. Even when domestic markets slow down, strong exports have helped stabilize earnings.
4. New Launches and Innovations
- Bajaj Chetak EV
- New Pulsar variants
- KTM and Husqvarna partnerships
- Triumph-Bajaj alliance for premium bike market
These innovations have excited both the market and consumers, boosting investor confidence.
Recent Trends: 2023–2025 Performance
1. Electrification Strategy
Bajaj has been aggressively expanding its EV portfolio, led by the Chetak electric scooter. In 2024, the Chetak expanded to over 250 cities, and EV revenue contribution, while still small, is growing rapidly.
The market rewarded Bajaj for its cautious but highly strategic EV rollout, avoiding cash burn and maintaining profitability.
2. Listing of Bajaj Auto’s EV Arm (Speculated)
There has been industry speculation around a potential IPO of the EV subsidiary (Bajaj Auto Electric). If this materializes, it could unlock significant value and re-rate the parent stock.
3. Buybacks and Dividends
Bajaj Auto has consistently announced buybacks and paid generous dividends. In FY24, it declared a dividend of ₹140 per share, attracting long-term income investors.
Financial Highlights (FY24–FY25)
| Metric | FY24 |
|---|---|
| Revenue | ₹44,000+ crore |
| Net Profit | ₹6,500+ crore |
| EPS (Earnings per Share) | ₹225+ |
| ROE (Return on Equity) | ~22% |
| Operating Margin | ~19% |
| Dividend Yield (2025) | ~1.7–2.2% |
Bajaj Auto has maintained excellent financial health, with minimal debt and high free cash flow.
Comparison with Peers
| Company | Share Price (2025) | EV Presence | Dividend Yield | ROE |
|---|---|---|---|---|
| Bajaj Auto | ₹7,800–₹8,000 | Growing (Chetak) | 2.0% | 22% |
| TVS Motor | ₹2,100–₹2,400 | Strong (iQube) | 0.9% | 17% |
| Hero MotoCorp | ₹3,600–₹3,900 | Catching up | 2.3% | 15% |
| Royal Enfield (Eicher Motors) | ₹4,500–₹4,800 | Premium segment | 1.0% | 18% |
Bajaj Auto enjoys the best export base and most balanced portfolio among its peers, with strong financials and a growing EV presence.
What Analysts Say in 2025
Brokerages remain bullish on Bajaj Auto due to:
- High cash reserves
- Scalable EV play
- Margin stability despite rising input costs
- Low valuation compared to global peers
Most analysts have set target prices between ₹8,500 to ₹9,200, depending on EV execution and export growth.
Opportunities Ahead
1. Global Expansion
Bajaj continues to penetrate African and Latin American markets, especially in three-wheelers and low-displacement motorcycles.
2. Electric Vehicles (EV)
The Chetak EV has received good response, and the upcoming electric motorcycles will solidify Bajaj’s position in the future-ready auto space.
Bajaj is also building EV manufacturing hubs and supply chain alliances that can give it a cost advantage over newer players.
3. Premium Segment Play
Through its partnerships with KTM, Husqvarna, and Triumph, Bajaj is aggressively expanding into mid to high-end motorcycles, a space with high margins and increasing youth demand.
Risks for Shareholders
1. EV Transition Speed
While Bajaj is making progress in EVs, the market expects faster adoption. A delay in electric motorcycle rollout may be viewed negatively.
2. Competition
TVS, Hero, Ola Electric, and Ather are investing heavily in EVs. Keeping pace without margin erosion is a challenge.
3. Commodity Price Fluctuations
Rising costs of aluminum, steel, and lithium could impact margins, though Bajaj’s scale helps it manage this better than smaller players.
4. Export Market Volatility
Geopolitical risks, currency fluctuations, and import regulations in African and Latin American countries could affect export revenue.
Investor Sentiment and Shareholding
Bajaj Auto enjoys high institutional ownership, including mutual funds, insurance companies, and FIIs. Promoters hold over 54%, signaling confidence in the company’s long-term future.
Retail investor interest remains strong, particularly in SIPs and long-term portfolios, due to its strong fundamentals and consistent returns.
Should You Buy Bajaj Auto Shares in 2025?
Buy If You Are:
- A long-term investor looking for stable, blue-chip growth
- Seeking dividend income with capital appreciation
- Bullish on India’s two-wheeler demand and EV transition
- Looking to hedge with a company that has strong exports
Wait or Avoid If You Are:
- Focused only on high-growth tech or EV startups
- Expecting aggressive EV expansion like Ola or Ather
- Looking for short-term trading gains—Bajaj Auto is more of a steady compounder
Conclusion
Bajaj Auto’s share price journey is a testament to strong fundamentals, visionary leadership, and a balanced approach to growth and innovation. With rising demand, a well-calibrated EV strategy, and global ambitions, Bajaj Auto remains a rock-solid investment for both conservative and aggressive investors.
Whether you’re a veteran investor or just starting out, Bajaj Auto deserves a place on your radar—and possibly in your portfolio.
