Reuters Market Eye - CLSA has downgraded Bajaj Auto to "sell" from "underperform" despite better-than-expected July-September results, saying profit margins should weaken in the second half of the fiscal year as product-mix worsens and input cost pressures rise.
CLSA says Bajaj's valuations are also "expensive" at 16 times fiscal 2015 price-to-earnings.
Bajaj, India's second-largest motorcycle maker by sales, reported on Wednesday a second-quarter profit that beat analyst estimates as a weaker rupee gave export earnings a boost.
(Reporting by Indulal P)