Auto stocks are under the most pressure in the market today. After the July-September quarter results, Bajaj Auto hit a 10% lower circuit. Apart from this, other auto stocks including Hero MotoCorp, Maruti Suzuki, TVS Motor are also seeing a decline. For the first time in the last 2 years, such a big decline is being seen in these stocks in a single day. Eicher Motors also saw pressure. However, this decline was less than other auto stocks.

Actually, Bajaj Auto released its second quarter results a day earlier (October 16). Along with the results, the company has reduced the growth outlook for 2-wheeler sales in India. The company estimates that it will grow at the rate of 5%, which is the lower level of the earlier estimate of 5-8%. This estimate from Bajaj Auto is being seen due to weakness in the festive season. There is also weakness in the demand for entry-level motorcycles.
 

Bajaj Auto's profit in the second quarter increased by 9% year-on-year to ₹ 2,005 crore. After the results, many leading brokerage firms including Citi, Macquarie, Jefferies and CLSA have issued notes on this stock. Global brokerage firm Citi has set a target price of ₹ 7,800 per share with a Sell opinion on this stock after the results. The brokerage firm says that the company's outlook regarding festive demand has surprised us. After the results, the management said that the volumes are only 1-2% higher than last year. In contrast, another brokerage firm Jefferies has set a target price of ₹ 13,400 per share with a Buy opinion on this stock. Jefferies said that the company's market share is increasing in the electric vehicle segment. CNG bike volumes are also increasing and the company is expanding its capacity in Brazil. Along with all these factors, cyclical recovery in 2-wheeler demand and exports in India will help Bajaj Auto to increase volumes. The company can show growth at 14% CAGR during 2024-27. CLSA, in its note, has set a target price of ₹ 9,493 per share while giving an Underperform opinion on Bajaj Auto. This brokerage firm says that volume recovery is being seen due to the small base in exports. This stock is trading at 33x EPS for FY26. At the same time, Goldman Sachs said that the company's results in the second quarter were as per estimates. The visibility of EV launches and normal growth in ICE motorcycles will benefit. This brokerage firm has set a target of ₹ 12,000 per share with a Neutral opinion on the stock.