Bajaj Auto shares take a beating, touch 52-week low; here's what is driving the share price down

Bajaj Auto shares touched a 52-week low of ₹7,387 on the NSE on Tuesday, down 4.24% from previous session’s close of ₹7,714.80. This marks the sixth consecutive session of the shares dropping in value on the exchange.

Bajaj Auto shares opened at ₹7,652.10, and are currently trading at ₹7,389.95 on the NSE, down 4.21% from previous session’s close. The company’s shares are down almost 42% from its peak in September last year. The shares have declined by almost 13% in the last one week.

While there’s no immediate trigger for today’s sharp decline, investor sentiment remains cautious due to recent news developments.

Last month, Bajaj Auto's two-wheeler exports surpassed domestic sales, with 1.53 lakh units shipped overseas, a 23% year on year rise, while domestic sales fell 14% to 1.46 lakh units. Despite this, higher three-wheeler sales in India kept total domestic volumes ahead at 1.83 lakh units versus 1.69 lakh exports. Including commercial vehicles, total sales rose 2% year-on-year to 3.52 lakh units, with exports surging 21% and domestic sales declining 11%.

The trend is also visible in full-year numbers, where domestic two-wheeler sales grew just 3% to 21.25 lakh units, while exports surged 15% to 15.42 lakh units. Total vehicle exports, including three-wheelers, grew 15% to 17.15 lakh units, making up 40% of Bajaj’s total volume, up from 37% last year, highlighting its growing global presence.

Last week, the company received an order from the Andheri air cargo customs commissioner denying concessional duty on certain aircraft parts, demanding ₹79.98 lakh in differential duty, an equal penalty, interest, and a ₹70 lakh redemption fine.

Additionally, it was served a GST notice for ₹138.53 crore by the deputy state tax commissioner in Pune and an order from the Chennai central assistant commissioner for excess ITC of ₹85,876, along with ₹20,000 in interest and penalty. These all orders, however, the company had said in separate exchange filings, are appealable.

Bajaj Auto, however, is not the only stock facing massive declines on the exchanges in recent days. Auto stocks have seen a broad-based correction in line with the market, with major players like Tata Motors, Hero, and others falling up to 50% from their 52-week highs.