Bajaj Auto Ltd. Managing Director Rajiv Bajaj said that he sees the fair value of Bajaj Auto’s stock at ₹12,000. Bajaj made these remarks in an exclusive interaction with CNBC-TV18 on Tuesday.

“I believe ₹12,000 is the fair value for the Bajaj Auto stock,” Bajaj said, adding that the company is firing on all six business cylinders.

Shares of Bajaj Auto have gained 123% over the last 12 months. The stock was the second-best performing stock on the Nifty 50 index in 2023, with gains of 88%.

Bajaj spoke to CNBC-TV18 ahead of the company’s share buyback, which opens on Wednesday, March 6. He mentioned that the buyback has received a tremendous response.

Bajaj Auto plans to buyback shares at a price of ₹10,000 each via the tender offer route, which was a premium of over 43% from the previous day’s closing price of January 8. The ₹4,000 crore share buyback will be carried out via the tender offer route and will close on March 13.

Brokerage firm JPMorgan on Monday maintained its “overweight” rating on Bajaj Auto and raised its price target to ₹8,900 from ₹8,275 earlier. He said that the company delivered a strong performance in overall volumes aided by continued strength in domestic and initial signs of export recovery volumes.

JPMorgan also raised its financial year 2024 to 2026 Earnings per Share (EPS) estimates for Bajaj Auto by 1% to 3%.

Out of the 45 analysts that track Bajaj Auto, 21 of them have a “buy” recommendation on the stock, while 12 each have a “hold” and “sell” rating respectively.

Shares of Bajaj Auto are trading 1.1% higher at ₹8,299.