Ashwin Patil of LKP Securities recommends holding Bajaj Auto for a target of Rs 2,450.
"At sales, they were quite inline but below that, they have surprised us slightly positively as we were expecting that exports would be weighing too much on the overall numbers, but instead of that, the rupee depreciation against dollar which has happened in the domestic markets for it, and the commodity prices softening has actually outweighed the impact of the global tensions that we were expecting from the stock. So, all-in-all, the numbers were not bad. They were good numbers as such, but going forward, the outlook remains weak on the export markets and that is where the stock has been tumbling since the results have come."
"There was an early spur in the stock price, but post that when everybody realised that since the global worries are there, the stock started coming down. So, from these levels, we are expecting some more pressure to build up in the export market, mainly in Nigeria and Egypt wherein for Egypt, there is balance of payment issue and in Nigeria, the availability of dollar is a big issue and we think that till oil remains at such dismal levels, the recovery in African markets is a bit of a distant thing and that is why the stock at least in the next couple of quarters will be facing export issues," he said.
"We are maintaining our hold rating on the stock with a target close to Rs 2,450."