Bajaj Auto in top gear after brokerage upgrade

Bajaj Auto rose 1.74% to Rs 2,808.65 at 11:42 IST on BSE after a foreign brokerage reportedly raised its rating to overweight against underweight and increased its target price to Rs 3251 a share from Rs 2502 a share.

Meanwhile, the S&P BSE Sensex was down 130.73 points or 0.44% at 29,84351

On the BSE, 12,000 shares were traded on the counter so far as against the average daily volumes of 20,019 shares in the past one quarter. The stock had hit a high of Rs 2,813 and a low of Rs 2,788 so far during the day.

The stock had hit a record high of Rs 3,122 on 9 September 2016 and a 52-week low of Rs 2,350.15 on 8 April 2016. The stock had underperformed the market over the past 30 days till 5 April 2017, falling 4.03% compared with the 3.36% rise in the Sensex. The scrip also underperformed the market in past one quarter, gaining 1.46% as against Sensex's 11.52% gain.

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

The foreign brokerage reportedly said that growth in domestic sales and exports from recent trough may underpin performance.

Bajaj Auto's total sales declined 11% to 2.72 lakh units in March 2017 over March 2016. Domestic sales fell 17% to 1.69 lakh units in March 2017 over March 2016. Exports rose 1% to 1.02 lakh units in March 2017 over March 2016. The announcement was made during market hours on 3 April 2017.

On a consolidated basis, Bajaj Auto's net profit fell 5.3% to Rs 976.82 crore on 8.6% decline in net sales to Rs 4975.56 crore in Q3 December 2016 over Q3 December 2015.

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

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