Bajaj Auto drops on worries over export to Argentina after slump in its currency

Bajaj Auto dropped 1.61% to Rs 2,483.55 at 13:30 IST on BSE on worries that crash in Argentina's currency, peso could hurt demand for company's products in one of its major export markets.

Meanwhile, the S&P BSE Sensex was down 211.73 points or 0.82% at 25,592.05.

On BSE, so far 11,865 shares were traded in the counter as against average daily volume of 23,739 shares in the past one quarter.

The stock hit a high of Rs 2,502.85 and a low of Rs 2,470.25 so far during the day. The stock had hit a 52-week high of Rs 2,655 on 23 July 2015. The stock had hit a 52-week low of Rs 1,913.80 on 30 April 2015.

The stock had outperformed the market over the past one month till 17 December 2015, rising 6.78% compared with Sensex's 0.23% fall. The scrip had also outperformed the market in past one quarter, gaining 8.69% as against Sensex's 0.62% fall.

The large-cap company has equity capital of Rs 289.37 crore. Face value per share is Rs 10.

Argentina's peso reportedly crashed by more than 25% yesterday, 17 December 2015, after the new government of President Mauricio Macri reportedly said that it would lift currency controls to attract investors and kick-start the economy. Reports suggest that Argentina is a key export market for two-wheeler major, Bajaj Auto. The company gets around 20% of its revenue from exports to Latin America, as per reports. Weak peso could make exports costlier there and hurt demand for the company's products.

Bajaj Auto's net profit rose 57.9% to Rs 933.06 crore on 2.6% growth in net sales to Rs 5980.63 crore in Q2 September 2015 over Q2 September 2014.

Bajaj Auto is one of the leading two-and three-wheeler manufacturers in India.

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