Bajaj auto defies market sentiment, slips nearly 3 percent in early trade

PTI, May 20, 2019, 3:58 PM IST

Mumbai: Shares of Bajaj Auto defied the broader market sentiment Monday and fell nearly 3 per cent in morning trade on bourses.

Market experts said, though the fourth quarter earnings for the auto major was a good show in a tough environment, the company is expected to face margin pressure.

The shares of Bajaj Auto opened at Rs 3,071, but lost ground and touched Rs 2,953.95, down 2.88 per cent over its previous close of Rs 3,041.80. Shares of the company were later trading at Rs 2,992.10, down by Rs 49.70, or 1.63 per cent at 1021 hrs.

Bajaj Auto was trading in the negative zone even as the broader market was trading with significant gains. The stock was the biggest loser in the Sensex pack.

“While we believe that margin downgrade cycle (but for any change to product mix) is behind, focus on domestic market share and higher share of Africa in exports are likely to keep margin range bound,” Edelweiss Research said in a note.

Edelweiss Research further noted that, a subdued demand environment, costs related to the entry in middle/executive segment (current market share of around 3 per cent) and technological changes due to BSVI will restrict margin to the current level.

Bajaj Auto Friday reported a 19.82 per cent increase in consolidated net profit at Rs 1,408.49 crore for the fourth quarter ended March 31, 2019.

Meanwhile, the BSE benchmark Sensex was trading with gains of 903.70 points or 2.38 per cent at 38,834.47 in early hours.

Disclaimer:The views expressed in comments section published on Udayavani.com are those of comment writers alone. They do not represent the views or opinions of Udayavani.com, its staff or The Manipal Group, or any entity associated with The Manipal Group. Udayavani.com reserves rights to remove a comment or all the comments any time.

To report any comment you can email us at udayavani.response@manipalgroup.info. We will review the request and delete the comments.


Related Articles

Latest Additions