Bajaj Auto stock downgraded by Morgan Stanley on export exposure

Published 09/09/2025, 09:42
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Investing.com - Morgan Stanley downgraded Bajaj Auto Ltd (NS:BJAUT) stock rating from Equalweight to Underweight, while lowering its price target to INR8,075.00 from INR9,117.00.

The downgrade reflects Bajaj Auto’s limited exposure to India’s domestic volume growth cycle, with only 60% of its volumes coming from the domestic market and the remaining 40% from exports.

Morgan Stanley expressed concern about Bajaj’s market share losses in the domestic internal combustion engine (ICE) two-wheeler market, noting that retail data shows the company’s market share has fallen to approximately 9%, one of its lowest levels in years outside the Covid period.

The research firm also pointed to Bajaj’s lack of presence in the ICE scooter segment as a factor that caps potential market share gains in India.

While Bajaj’s domestic ICE three-wheeler portfolio will benefit from a 10% reduction in the Goods and Services Tax (GST) rate from 28% to 18%, Morgan Stanley expects limited volume increases from this tax cut.

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