At the BSE, shares of Bajaj Auto opened at Rs 3,071, but slid 2.88 percent to its intra-day low of Rs 2,953.95.
Shares of Bajaj Auto on May 20 defied the broader market sentiment and settled with over 1 percent loss on bourses.
Though the fourth quarter earnings for the auto major was a good show in a tough environment, the company is expected to face margin pressure, market experts said.
At the BSE, shares of Bajaj Auto opened at Rs 3,071, but slid 2.88 percent to its intra-day low of Rs 2,953.95. They finally settled at Rs 3,005.85, down 1.18 percent over its previous close of Rs 3,041.80.
At the NSE, the scrip of the company fell 0.82 percent to close the counter at Rs 3,015. Intra-day it was trading at a low of Rs 2,951.
Bajaj Auto was trading in the negative zone even as the broader market was trading with significant gains. The stock was the biggest loser in the Sensex pack.
"While we believe that margin downgrade cycle (but for any change to product mix) is behind, focus on domestic market share and higher share of Africa in exports are likely to keep margin range bound," Edelweiss Research said in a note.
It further noted that a subdued demand environment, costs related to the entry in middle/executive segment (current market share of around 3 percent) and technological changes due to BS-VI will restrict margin to the current level.
The company on May 17 reported a 19.82 percent increase in consolidated net profit at Rs 1,408.49 crore for the fourth quarter ended March 31, 2019.Meanwhile, the BSE benchmark Sensex closed with gains of 1,421.90 points or 3.75 percent at 39,352.67.The Great Diwali Discount!
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