On the downside, the analyst pointed out that Bajaj Auto's corrective actions to arrest market share declines, which have been in effect since April, have shown limited results. Further actions could potentially pressure margins. The upcoming launch of an entry-level 125 CC motorcycle in fiscal 2026 and a price realignment may lead to a 30-50% under-recovery in commodity costs, which could impact margins by approximately 100 basis points in the near term. The revision in Bajaj Auto's stock rating and price target reflects Morgan Stanley's analysis of these factors. The new price target of INR9,117.00, albeit marginally lower than the previous target, takes into account the company's prospects and challenges ahead. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.