Bajaj Auto share price recovers 24% from April lows. Is the rally sustainable?
Bajaj Auto share price in focus: Shares of Bajaj Auto, one of the leading two-wheeler manufacturers, resumed their winning streak on Wednesday, May 21, gaining 2.5% to hit the day's high of ₹ 8,765 apiece. This came after a brief pause in the previous session due to a sudden market crash.
Since May 8, the shares have strengthened 13.5%. However, analysts see limited upside in the stock amid a lack of volume. Anshul Jain, Head of Research at Lakshmishree Investments, said that Bajaj Auto has formed a bearish reversal structure on the daily chart, coinciding with the auto index correcting from its swing high.
"The stock's recent rally lacked volume strength, and the ongoing reversal is also occurring on lower volumes, indicating weak bullish conviction. A follow-through move on the downside is likely, with the 20-day EMA placed near 8,250 acting as the next logical target in the short term if selling pressure persists," he further stated.
After being under pressure for six consecutive months, the shares made a comeback in early April and have maintained their momentum so far in the current month. As a result, the stock has recovered 24% from its April 7 low of ₹ 7,089 apiece.
Despite this notable recovery, the stock is still trading 33% below its all-time high of ₹ 12,744 apiece recorded in September 2024. Recent media reports stated that its wholly owned subsidiary, Bajaj Auto International Holdings BV, Netherlands, secured a €566 million loan from offshore lenders, speculating that the funds may be used for the restructuring of KTM AG.
In its regulatory filing on May 19, the company clarified that it is currently in negotiations and exploring various alternatives to participate in the restructuring of KTM AG, pursuant to a plan approved by the latter's creditors. "Involvement by Bajaj Auto BV in the restructuring as well as arrangements in this behalf are being finalized, and the company will make necessary disclosures at the appropriate time in accordance with Regulation 30 of the Listing Regulations," the company said.
Meanwhile, the company is scheduled to release its financial results for the March quarter on May 29. It posted a 6% decline in its total sales to 365,810 units in April, against 388,256 units sold a year ago.
Domestic sales were down 11% year on year to 220,615 units, while exports were up 4% to 145,195 units. In the reported month, two-wheeler sales dropped 7% to 317,937 units, while commercial vehicle sales grew by 3% to 47,873 units.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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The Wire
9 hours ago
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‘Issue of Statehood and Sixth Schedule Unresolved': Ladakh Leaders as Union Govt Notifies New Rules
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The Ladakh Civil Services Decentralization and Recruitment (Amendment) Regulation, 2025, which was notified by President Droupadi Murmu along with a set of new regulations on Monday (June 2) and Tuesday (June 3), sets 15-year continuous residency from October 31, 2019 for a non-local to obtain domicile certificate among other rules. The rules for obtaining domicile certificate have been laid out in the Ladakh Civil Services Domicile Certificate Rules, 2025. Ladakhi leader Mohammad Haneefa Jan, who won the region's only Lok Sabha seat in 2024 general election as an independent candidate, said that the new domicile policy was 'meaningless' in the absence of restoration of Ladakh's statehood. 'The government had agreed on a new domicile policy earlier also, so there is nothing new in it, especially because the LAB and KDA leaderships' demand of 30 years continuous residence has not been conceded by the Union government,' he said. While the rules governing the new regulations are yet to be specified, LAB chief Dorjay said that 95% jobs (including 10% for 'Economically Weaker Section' category) were now reserved for local domiciles under the Ladakh Reservation (Amendment) Regulation, 2025, which was also notified on Tuesday. The new regulation increases the cap on reservation in government jobs in Ladakh from 50% to 85% for Scheduled Castes (SC), Scheduled Tribes (ST), Other Backward Classes (OBC), and other educationally and socially backward groups. 'Even if outsiders become domiciles of Ladakh after 2034, they can only compete for five percent of jobs while 95 percent jobs are reserved for original residents which is the highest in the country,' Dorjay said. He said that unlike in Jammu and Kashmir which got a domicile policy with retrospective effect after 2019, the policy in Ladakh has a prospective effect, 'The policy has been extended to admissions to medical, engineering and other professional institutions in Ladakh,' Dorjay said. According to the National Commission for Scheduled Tribes, Ladakh has more than 83% tribal population and the new rules are seen as an attempt by the BJP to quell widespread public anger over the erosion of Ladakh's unique identity and appropriation of work opportunities in the government by outsiders post 2019. However, Ladakhi leader Jan, who is also a member of a high-powered committee set up by the Union Ministry of Home Affairs (MHA) in 2023 to examine the four-point demands of LAB-KDA combine, said that the main issue of negotiations was the 'restoration of democracy' in Ladakh. 'The country came out of the British colonial rule in 1947 but Ladakh has been pushed into slavery since 2019. 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He said that many people are projecting the regulations on reservation and domicile as 'some kind of resolution' for the problems in Ladakh 'which is far from truth'. 'If the central government sincerely discusses safeguards under Sixth Schedule and restoration of democracy and statehood, then people would be very happy. But if they don't and hold the hill council elections, then it will impact the credibility of any democratic process,' he said. In the 2020 Hill Council election, the promise to include Ladakh in Sixth Schedule figured among the top three agendas of the BJP's election manifesto for the border region. According to the manifesto, the party promised to protect 'land, job and environment' by bringing 'constitutional safeguards under Sixth Schedule' with the agenda of 'political empowerment' of Ladakh following its separation from Jammu and Kashmir. 'It completes a full circle,' Wangchuk said of the BJP's reference to the Sixth Schedule in its election manifesto, 'If that promise is not fulfilled again, then consequences will be seen in the election as was seen in the 2024 parliamentary election when the BJP lost in Ladakh because in 2019 parliamentary election, they had promised to include Ladakh in Sixth Schedule and failed to fulfil it.' He added, 'In a democracy, people send a message through the electoral process which is what might happen again after the parliamentary election in the hill council election towards the end of September this year.' Among a series of notifications issued by President Murmu also includes the Ladakh Official Languages Regulation, 2025 which recognises English, Hindi, Urdu, Bhoti and Purgi as official languages of the Union Territory with making recommendations about their use, and The Ladakh Autonomous Hill Development Councils (Amendment) Regulation, 2025 under which one-third of seats in Hill Councils in Kargil and Leh would be reserved for women. The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.
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10 hours ago
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Global auto industry on edge as China tightens rare earth mineral exports
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SPARC share price tumbles 20% as Sun Pharma's arm halts development of Psoriasis drug
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