Bajaj Auto stock has been on a ride over the past one year, offering more than 66% returns to investors year to date. The share price rose 0.70% to hit a fresh 52-week high of Rs 5,971.95 intra-day Tuesday. It advanced 4.11% in the last 5 days, 11.75% in the last one month and a whopping 28.46% in the last six months.

Abhishek Gaoshinde, Deputy Vice President Research at Sharekhan by BNP Paribas, highlighted multiple factors driving Bajaj’s stock price. These include sustaining margins above 19% for the last 4 quarters, a soft raw material cost trend, exports bottoming out, and plans to launch multiple electric two-wheelers. Abhishek Gaoshinde further added  that the launch of electric 3-wheelers (E3W) has worked in favour, as it is not a margin-dilutive business. Moreover, the company’s entry into the iconic premium brand segment, through the launch of the Triumph 400 cc, has provided an edge to the stock.

Another leading factor that is attributed to the surge is the  demand during the festive season and the marriage season that is underway. According to a BNP Paribas report, the automotive sales during the ten days of the festive period, which included Dhanteras and Diwali, contributed almost one-third of the overall festive demand. The growth in the final phase of the festivals (November 5-15 Nov) was stronger for most of the sub-segments of the industry compared with that in the same period of last year’s festive season (17-25 Oct 2022).