Buy Bajaj Auto on decline, says Amit Gupta

Amit Gupta, Head- Derivatives, ICICI Direct advice traders to buy Bajaj Auto on decline.

Gupta told CNBC-TV18, “When the market becomes jittery, we have always seen that the two-wheeler stocks generally starts performing and this is there, if you look at Bajaj Auto, once it fell from Rs 1,650 to almost Rs 1,470 odd levels, we have seen that fresh accumulation has started coming up in the stock.”
He further added, “ Now it is hitting again towards Rs 1,600 levels, I think the declines can be utilized to go long, keep your stop loss around Rs 1,560 and it is possible that eventually the stock should hit Rs 1,660 levels. I think the momentum will come for intraday traders above Rs 1,630.”
The company's trailing 12-month (TTM) EPS was at Rs 125.53 per share. (Dec, 2011). The stock's price-to-earnings (P/E) ratio was 12.71. The latest book value of the company is Rs 169.69 per share. At current value, the price-to-book value of the company was 9.4. The dividend yield of the company was 2.51%.