Strong domestic demand recovery remains vital for Bajaj Auto stock

On the profitability front, favourable raw material costs and better product mix led to a 260 basis points y-o-y jump in operating profit margins to 19.8 per cent

A better- than-expected margin performance in the September quarter, healthy domestic demand, and hopes of a gradual improvement in exports led to a 6.6 per cent uptick in the stock price of two-wheeler major Bajaj Auto.

The Pune-based company was the largest gainer in the BSE100 index. 

On the profitability front, favourable raw material costs and better product mix led to a 260 basis points to year-on-year (Y-o-Y) jump in operating profit margins to 19.8 per cent.

This was the fourth consecutive quarter of the metric remaining above the 19 per cent mark.

The company is looking to sustain margins