Bajaj Auto Surges as Board Mulls Share Buyback; CEO Highlights Strong Quarter

Bajaj Auto

December 4, 2024

New Delhi, India

Bajaj Auto Share Jumps 5%

Bajaj Auto, a prominent player in the automotive sector, experienced a 5% stock jump to surpass Rs 7,000 following the announcement that the company’s board is set to deliberate on a potential share buyback during the scheduled meeting on January 8.

Stock Rally on Buyback Buzz:

Investors responded positively to the news, propelling Bajaj Auto‘s stock to a historic high. The surge, witnessed on January 3, indicates market confidence in the company’s strategic moves.

CEO’s Perspective and Rationale:

Rajiv Bajaj, the CEO of Bajaj Auto, spoke to CNBC-TV18, expressing the view that a buyback serves as an efficient means to return capital to shareholders. He highlighted the outstanding quarter the company had and hinted that this buyback might be more substantial than previous ones. Bajaj emphasized the company’s commitment to distributing capital when cash reserves exceed Rs 15,000 crore.

Financial Performance and Business Development:

Bajaj Auto recently reported a robust 16% increase in total sales for December 2023, reaching 3,26,806 units. The rise in two-wheeler sales, from 2,47,052 to 2,83,001 units, underscores the company’s strong performance. Additionally, Bajaj mentioned strategic investments in new technologies, such as Chetak, and a new plant for KTM in Chakan, Pune.

Market Outlook and Investor Interest:

The positive market response suggests that investors view Bajaj Auto‘s potential share buyback favorably. The CEO’s remarks about capital distribution and strategic investments have likely contributed to this optimistic outlook.

Looking Ahead:

As the board meeting on January 8 approaches, investors and industry observers will be keenly watching for further details regarding the share buyback and the company’s future plans.

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