BofA Merrill downgrades Mahindra, Bajaj Auto to 'underperform'

Cites share gains since mid-2012, 'not compelling' valuations

 

Bank of America Merrill Lynch downgraded automakers Mahindra and Mahindra Ltd and Bajaj Auto Ltd to "underperform" from "buy" each, citing share gains since mid-2012 and valuations it considered "not compelling."

BofA Merrill also cut its price target on Bajaj Auto by 16% to Rs 1,925, and its price target on Mahindra and Mahindra to Rs 883 from Rs 965, according to its report dated March 8.