Bajaj Auto Rises 0.8% to ₹10,362 on June 04 as Copper Demand Climbs

Bajaj Auto Limited rose 0.8% to ₹10,362 on June 04, driven by copper prices hitting record highs. The stock trades near its 50-day average of ₹9,871 and benefits from rising metal demand in the automotive sector. Meyka rates the stock B+ with a 12-month target of ₹11,024, reflecting neutral momentum but strong fundamentals.

Copper Surge Boosts Automotive Demand

Copper prices reached record levels on June 04, creating tailwinds for metal-intensive manufacturers like BAJAJ-AUTO.NS. The commodity rally supports demand for automotive components and two-wheeler production. Bajaj Broking highlighted copper beneficiaries, signaling investor interest in the sector.

Bajaj Auto Fundamentals Remain Solid

Bajaj Auto trades at a P/E of 26.72 and generates ₹2,235 in revenue per share. Return on equity stands at 30%, well above sector averages. The company pays a 1.46% dividend yield and maintains a current ratio of 1.76, indicating strong liquidity. Meyka’s B+ grade reflects neutral valuation but robust profitability metrics.

Mixed Signals in Bajaj Consumer Care

Bajaj Consumer Care fell 2.2% to ₹558.80 on June 04, despite a Meyka A- rating. The stock trades at 39.1x earnings but shows strong ROE of 26.3% and zero debt. Analysts flagged that copper prices benefiting metal stocks may overshadow consumer staples near term.

Bajaj Electricals Faces Headwinds

Bajaj Electricals dropped 2.76% to ₹304.25, with Meyka rating it B and recommending hold. The stock trades at negative earnings and shows weak ROE of -5.4%. RSI at 21.56 signals oversold conditions. Free cash flow yield of 16.2% offers value, but profitability challenges persist. The company’s 12-month forecast sits at ₹588, suggesting recovery potential if operational issues resolve.

Final Thoughts

Bajaj Auto’s 0.8% gain reflects commodity tailwinds and solid fundamentals, with Meyka’s B+ rating and ₹11,024 target suggesting limited downside. Consumer and electrical segments face near-term pressure despite strong balance sheets.

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