Bajaj Auto shares hit a new 52-week high amid a 17% growth in PAT; company amends new dividend policy

Today, shares of Baja Auto hit a 52-week high today amid strong financial results for the second quarter of FY24 and the amendment of the new dividend policy. On a consolidated basis, In Q2FY24 company recorded a robust financial performance with a 17.48% year-on-year increase in net profit reaching Rs 2,020.05 crore compared to Rs 1719.44 crore in the corresponding quarter of the previous year. During the second quarter of FY24, the company’s total net revenue showed an increase of 6.36%, from Rs 10,536.56 crore to Rs 11,206.84 crore compared to the same quarter in the preceding year.

The company said during the second quarter of FY24 it sold 10,50,975 units as against 11,51,012 units sold during the previous year’s same quarter of FY23 which is a decline of around 8%. Sequentially, the net profit for the quarter ending on September 30, 2023, showed an increase of 22.86% from Rs 1644.14 crore. However, in Q2FY24, the company’s total net revenue registered a 5.10% increase compared to the previous quarter, settling at Rs 10,663.01 crore.

The company has also announced an amendment to its Dividend Distribution Policy. The management of the company said the revised policy reflects the company’s commitment to enhancing long-term shareholder value and sustainable growth. The new amendment underscores Bajaj Auto’s dedication to striking the right balance between rewarding shareholders and maintaining a strong financial foundation. The new policy will offer greater flexibility in making dividend decisions based on various factors, including financial performance, funding requirements, strategic plans, and market conditions. The policy outlines a structured approach to determine the quantum of dividends and the overall payout to shareholders based on the surplus funds available.

Yesterday the scrip closed at Rs 5,143.80. Today it opened at Rs 5,268.90 and is currently trading at Rs 5,332.40, up by 3.67%. Today shares of the company hit a fresh 52-week high at Rs 5,393.30 and it has a 52-week low at Rs 3,522. The company currently commands a market capitalisation of approximately Rs 1,50,800 crore, with shares having generated a one-year staggering return of 45.78%.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.