The share price of Bajaj Auto rose nearly 10 percent to hit a 52-week high on Friday after the auto major clocked its highest-ever standalone profit and turnover in the December quarter.

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The company's standalone net profit rose 23 percent year-on-year to Rs 1,556.28 crore versus Rs 1,261.6 crore in the year-ago period. The rise in profit was driven by a rise in volume growth and operating performance.

The stock rose as much as 9.7 percent to its 52-week high of Rs 4,068.55 per share on the BSE.

Bajaj Auto recorded the highest-ever turnover which for the first time ever exceeded Rs 9,000 crore and the highest ever profit after tax at over Rs 1,500 crore.

Meanwhile, its revenue from operations in Q3 was also up 16.6 percent to Rs 8,909.9 crore from Rs 7,639.7 crore in the previous year. Total sale volumes during the quarter rose 9 percent to 1,306,810 units from 1,202,486 units, YoY.

Most brokerages were also bullish on the stock after such strong results in the December quarter. Brokerage house CLSA maintained its 'outperform' rating but raised its target price from Rs 3,725 to Rs 3,915. It also increased FY21-23 EPS estimates by 5-6 percent to factor in a better outlook for exports and operating cost management.

"Bajaj Auto’s Q3FY21 results came in better than expectations. The revenue and Ebitda were 1 percent and 6 percent above our forecasts. Its Ebitda margin was 19.4 percent as the company managed to continue its savings in staff and selling costs. Management indicated improving trends in both export and domestic two-wheelers and expects the gradual normalisation of three-wheelers," the brokerage stated in a results review note.

However, it added that the recent increase in commodity costs will impact its financials in Q4 as the price hikes are unlikely to keep pace in the near term.

LKP Securities was also positive on the auto company. It maintains a "buy" rating on the stock with an improved target price of Rs 4,142.

With intrinsic demand getting back almost to the pre-COVID level, production/supply constraints have reduced, said LKP. The two-wheeler demand in the domestic markets is expected to continue its uptrend, with strong rural demand driven by good monsoons and pent-up demand.

Exports improvement is also expected to continue and high margin models to sell well in domestic markets, it further added.

The company's margins came in at a multi-quarter high at 19.4 percent.

Post the earnings, Rakesh Sharma, ED of Bajaj Auto said, “The uptick in the margins is definitely driven by the two points which is a higher share of exports and a higher share of premium products. Q3 which enjoys the season months both internationally and domestic means it becomes the largest quarter and one gets considerable operating leverage and therefore the fixed cost per unit is lower and that improves the margin. That is also an effect which we enjoyed in Q3.” Seasonally, Q4 is lower than Q3 and that effect will dilute itself in quarter, Sharma added.

The company’s overall share in the domestic motorcycle market rose to 18.6 percent in Q3FY21 as against 17.5 percent in Q2FY21 and 18.5 percent in FY20, the company said in a regulatory filing.

Bajaj Auto recorded the highest ever sales for Pulsar (over 420,000 units) in domestic and export markets and Boxer (over 380,000 units) in various international markets. It also recorded the highest ever exports at 687,000 units despite a shortage of containers, the company added.