Shares of Bajaj Auto were up one percent on Friday on the BSE after the two and three-wheeler manufacturer reported a sharp jump in earnings for the first quarter of fiscal 2022.

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Bajaj Auto posted a net profit of Rs 1,061.2 crore in the June quarter as against Rs 528 crore in the year-ago period, owing to a low base. CNBC-TV18 analysts’ poll had an estimated net profit of Rs 1,137 crore.

The company's revenue from operations rose nearly 140 percent to Rs 7,386 crore as compared to Rs 3,079 crore year-on-year (YoY). Revenue was in line with estimates of Rs 7,352 crore.

However, profit and revenue fell sequentially as the net profit in the previous quarter stood at Rs 1,332 crore whereas the revenue at Rs 8,596 crore.

At the operating level, EBITDA jumped to Rs 1,120 crore from Rs 408.5 crore, while EBITDA margin expanded to 15.2 percent from 13.3 percent, YoY.

The operational performance was lower than estimates as EBITDA was expected at Rs 1,176 crore and EBITDA margin at 16 percent.

Here’s what brokerages have to say on Bajaj Auto’s stock and Q1 performance:

Nomura

The brokerage has a 'buy' call on the stock with the target at Rs 4,668 per share. It noted that though the company's first-quarter results were slightly below estimates, it is focusing on the premium portfolio and has some margin catalysts in place to drive growth.

Morgan Stanley

The brokerage has an 'overweight' rating on the stock with the target at Rs 4,550 per share. According to the brokerage, the weaker product mix can be offset by the price increase during the quarter. It also said the company's earnings were in line with the brokerage's estimations.

Citi

Citi has a 'sell' call on the stock with the target at Rs 3,000 per share. The brokerage is concerned about the motorcycle product mix and domestic 3W demand.

According to the brokerage, commodity cost pressures were evident in the company's first-quarter results but better pricing and lower SG&A expenses partly mitigated the impact on margin. It has also reduced its earnings estimates by 1-2% over FY22-24.

Macquarie

The brokerage has a 'neutral' rating on the stock with the target at Rs 4,053 per share. It noted that the company's margins were impacted by lower volumes and input cost inflation and that the near-term headwinds still persist.

At 10 am, the shares of Bajaj Auto were trading 0.50 percent up at Rs 3,872.65 apiece on the BSE.