Deutsche cuts Bajaj Auto to 'hold' on valuations

Says current valuations have already priced in a 'robust' margin trend

Deutsche Bank downgraded Bajaj Auto Ltd to "hold" from "buy" and cut the target price on its stock to Rs 2,000 from Rs 2,250, saying current valuations have already priced in a "robust" margin trend.

The investment bank also says Bajaj's domestic two-wheeler growth is seen at 2.7% a year till fiscal year 2016 compared with 8.8% for the industry.

Deutsche says the bike maker is also underperforming in the faster-growing domestic segment of 125 cc motorcycles.

Bajaj Auto shares are up 0.05% at 10:07 am.