Bajaj Auto Buyback: Board Meets May 6 to Decide

Bajaj Auto Buyback on the Table: What the May 6 Board Meeting Means Bajaj Auto (NSE: BAJAJ-AUTO) has called a board meeting for May 6 to consider a share buyback proposal. The company closed FY25 with an estimated net cash position exceeding ₹15,000 crore, which gives management plenty of room to return capital without touching operations. Buyback decisions are a direct signal that the board believes the stock is trading below intrinsic value. At a current market cap of roughly ₹2.1 lakh crore, even a ₹2,500 to ₹3,000 crore buyback would reduce the equity float materially and lift EPS on a per-share basis. The timing matters. Foreign institutional investors were net sellers in Indian equities through April, pulling over ₹15,000 crore from the cash segment in a single month. Brent crude hovering near $88 to $90 per barrel adds input cost pressure across the auto sector. A buyback announcement, if it comes, would give BAJAJ-AUTO a catalyst that's entirely company-specific and insulated from the macro drag that's been weighing on broader indices. The stock has underperformed the Nifty Auto index by roughly 6% over the trailing three months. That underperformance sets up a cleaner entry point ahead of the announcement. Bajaj Auto's management has a clear track record on capital allocation. The company paid a special dividend of ₹90 per share in FY24 alongside its regular dividend, which showed a genuine willingness to return cash when retained earnings exceed deployment needs. A buyback is the next logical step in that progression and typically generates a sharper near-term price response than dividends do. Sector Read: How BAJAJ-AUTO's Move Stacks Up Against Auto Peers The Indian two-wheeler segment is in a split recovery. Premium motorcycles, Bajaj's core strength through the Pulsar and Dominar platforms and its stake in KTM, continue to post strong volume growth. The entry-level segment remains under pressure from rural income stress. Bajaj Auto's export busines...