Stock Performance and Market Context
On 26 Feb 2026, Bajaj Auto Ltd. recorded its highest price in the last 52 weeks, surpassing previous resistance levels and signalling sustained investor confidence. The stock has gained 2.82% over the last two consecutive trading sessions, despite underperforming its sector by 0.49% on the day of the new high. Trading above all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – the stock’s technical indicators reflect a strong upward trend.
In comparison, the broader Sensex opened 142.71 points higher and was trading at 82,462.25, up 0.23%. Although the Sensex remains 4.48% below its own 52-week high of 86,159.02, mega-cap stocks are leading the market rally, with Bajaj Auto standing out in the automobile sector.
Long-Term Returns and Sector Leadership
Over the past year, Bajaj Auto Ltd. has delivered a total return of 20.04%, nearly doubling the Sensex’s 10.52% gain in the same period. This outperformance highlights the company’s resilience and ability to generate shareholder value consistently. The stock’s 52-week low was Rs.7,088.25, indicating a substantial appreciation of over 43% from its lowest point in the last year.
With a market capitalisation of Rs.2,82,293 crores, Bajaj Auto is the largest company in the automobile sector, accounting for 33.38% of the sector’s total market cap. Its annual sales of Rs.57,718.86 crores represent 31.53% of the industry’s revenue, further cementing its dominant position.
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Fundamental Strength and Financial Metrics
Bajaj Auto’s strong fundamentals have been a key driver behind its stock rally. The company boasts an average Return on Equity (ROE) of 23.08%, reflecting efficient utilisation of shareholder capital. Net sales have grown at an annualised rate of 17.33%, while operating profit has expanded at 22.64% per annum, signalling healthy top-line and margin growth.
Its low average debt-to-equity ratio of 0.08 times indicates a conservative capital structure, reducing financial risk. Institutional investors hold a significant 22.91% stake in the company, underscoring confidence from well-resourced market participants who typically conduct rigorous fundamental analysis.
MarketsMojo assigns Bajaj Auto a Mojo Score of 74.0 and upgraded its Mojo Grade from Hold to Buy on 16 Feb 2026, reflecting improved outlook based on comprehensive financial and market data.
Valuation and Profitability Considerations
Despite the strong performance, Bajaj Auto’s valuation metrics suggest a premium positioning. The company’s Return on Capital Employed (ROCE) stands at 23.7%, with an enterprise value to capital employed ratio of 6.2 times, indicating relatively expensive valuation compared to peers. The PEG ratio of 1.7 reflects that while profits have grown by 18.7% over the past year, the stock price has appreciated by 20.04%, suggesting the market has priced in growth expectations.
Interest expenses for the nine months ending December 2025 rose sharply by 141.05% to Rs.824.23 crores, with the operating profit to interest ratio at a quarterly low of 11.89 times. These figures warrant monitoring but have not impeded the stock’s upward momentum.
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Sector and Market Positioning
Bajaj Auto’s leadership in the automobile sector is further emphasised by its contribution to the BSE500 index, where it has outperformed over one year, three years, and three months. The company’s market cap represents a third of the entire sector, highlighting its influence on sectoral performance and investor sentiment.
The stock’s consistent gains and ability to trade above all major moving averages indicate strong technical support, which complements its fundamental strengths. This dual momentum has been instrumental in driving the stock to its new 52-week high.
Summary of Key Metrics
To summarise, Bajaj Auto Ltd. has demonstrated:
- New 52-week high price of Rs.10,186.6
- One-year return of 20.04%, outperforming Sensex by nearly 10 percentage points
- Strong ROE of 23.08% and ROCE of 23.7%
- Annual sales growth of 17.33% and operating profit growth of 22.64%
- Low average debt-to-equity ratio of 0.08 times
- Institutional holdings at 22.91%
- Mojo Grade upgraded to Buy with a score of 74.0
These factors collectively underpin the stock’s recent rally and milestone achievement.
Market Environment and Outlook
The broader market environment remains supportive, with the Sensex showing positive momentum and mega-cap stocks leading gains. Bajaj Auto’s position as a sector leader and its market-beating returns over multiple time frames reinforce its status as a key constituent of the automobile sector.
While valuation metrics suggest a premium, the company’s consistent growth in sales and profits, combined with strong capital efficiency, provide a solid foundation for its current market valuation.
Conclusion
Bajaj Auto Ltd.’s ascent to a new 52-week high of Rs.10,186.6 marks a significant milestone reflecting both its fundamental strength and technical momentum. The stock’s performance over the past year, supported by robust financial metrics and sector leadership, highlights its prominent role in the Indian automobile industry. Investors and market participants will continue to monitor the company’s financial health and market dynamics as it maintains its position at the forefront of the sector.
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