Bajaj Auto’s shares fell over 6 percent on Monday as investors reacted to Bajaj Auto’s results.
The stock touched an intraday high of Rs 2,854.00 and an intraday low of Rs 2,658.65.
India's third largest two-wheeler maker missed analysts' expectations by reporting a 20.7 percent year-on-year rise in its standalone net profit for the quarter ended June.
The company's net profit came in at Rs 1,115.23 crore. The average of estimates of the 18 analysts polled by Reuters had pegged the bottom line at Rs 1,261 crore.
The Pune-based bike maker's total income came in at Rs 7,823.70 crore , nearly 24 percent higher than in the same quarter last year. The analysts polled by Reuters had expected the company to report revenue of Rs 6,359 crore.
Bajaj Auto, which makes and sells motorcycles under the Pulsar, Avenger, CT100 brands, as well as three-wheelers under the RE brand, clocked a volume growth of 38 percent during the reporting quarter.
It sold over 1.22 million units in the April-June period, up from 8.88 lakh units sold last year.
Motorcycle sales grew 33 percent to 1.02 million units, while three-wheeler sales came in at 1.96 lakh units, 74 higher than last year.
Brokerage: Deutsche Bank | Rating: Hold | Target: Rs 3,000
The bank said that recent commentary indicated that market share gain is the priority. It is forecasting 18.1 percent margin in FY19.
Brokerage: Morgan Stanley | Rating: Overweight | Target: Rs 3,785
Morgan Stanley said that the June quarter’s margin was weaker than expected. Further, it said that meaningful and sustainable market share gains will be crucial. It sees mid-single digit risks to earnings estimates.
Brokerage: Macquarie | Rating: Neutral | Target: Rs 2,800
The global research firm highlighted that the firm is struggling to balance growth and profitability. It expects exports to grow 12% in fy19, off a low base.
Brokerage: Jefferies | Rating: Hold Target: Rs 3,090
Jefferies said that the large miss on margin reconfirms our concerns on domestic 2-wheelers. Volume gains are unlikely to sustain either, in the long run, it added.
At 14:35 hrs Bajaj Auto was quoting at Rs 2,699.70, down Rs 141.40, or 4.98 percent, on the BSE. It touched a 52-week low of Rs 2,658.65.
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