Bajaj Auto gains after extending partnership with KTM AG to Indonesia

Bajaj Auto gained 0.62% to Rs 2,389.50 at 11:30 IST on BSE after the company said that an agreement has been reached between the company and KTM AG to extend their partnership into Indonesian market.

The announcement was made during market hours today, 8 April 2016.

Meanwhile, the BSE Sensex was up 8.19 points, or 0.04%, to 24,696.17.

On BSE, so far 4,466 shares were traded in the counter, compared with an average volume of 21,312 shares in the past one quarter. The stock hit a high of Rs 2,396.90 and a low of Rs 2,350.15 so far during the day. The stock hit a 52-week high of Rs 2,655 on 23 July 2015. The stock 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 7 April 2016, rising 3.04% compared with 0.16% decline in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 1.84% as against Sensex's 0.67% fall.

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

Bajaj Auto and KTM already have a established partnership for almost 10 years. Under the new agreement with KTM, Bajaj Auto will extend its distribution network in Indonesia, the biggest motorcycle market in South East Asia. The arrangement involves KTM branded Duke and RC motrcylces upto a displacement of 400 cc, which are developed and assembled by Bajaj Auto-KTM joint venture to be distributed through a chain of KTM dealerships, to be managed by Bajaj in Indonesia. The aim of arrengement is to expand the business in the relevant, growing and price sensitive market in South East Asia. The company added that the existing business partnership with the current importer P T Jaya Selaras Sejahtera will remain, but will now fully focus on model range above 400 cc. KTM is a premium European brand manufacturing sport motorcycles.

Bajaj Auto will announce Q4 results on 25 May 2016. Bajaj Auto's net profit rose 4.7% to Rs 901.49 crore on 1% fall in net sales to Rs 5463.20 crore in Q3 December 2015 over Q3 December 2014.

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

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