Shares Rise Despite Weak Outlook For Exports

According to Nomura, Bajaj Auto will continue to face headwinds on volume growth due to a slower recovery in the domestic two-wheeler market and risks to exports.

Motilal Oswal Financial Services Ltd. said the worst is behind and sales will rise for the maker of Pulsar motorcycles.

Sales of its electric two-wheeler Chetak increased to 9,800 over the July-September period from 6,300 units in the previous quarter. The company said it expects to reach of 6,000 units a month by the end of the current financial year.

Shares of Bajaj Auto gained as much as 2.9% to Rs 3,674.85 apiece on Monday. As of 1:45 p.m., the scrip traded 1.23% higher on the NSE.

Of the 54 analysts tracking the company, 31 maintain a ‘buy’, 18 suggest a ‘hold’ and five recommend a ‘sell’, according to Bloomberg data. The 12-month consensus price target implies an upside of 12.4%.

Here’s what brokerages had to say about Bajaj Auto’s quarterly results: