Bajaj Auto may test Rs 2100: Basudeb Banerjee

Basudeb Banerjee of Quant Broking told CNBC-TV18, "For Bajaj Auto our target price is around Rs 2,100 where prime driver of Bajaj Auto is this dollar-rupee aspect. If you leave that thing aside domestic motorcycle market incumbents are doing pretty badly. Its year-to-date (YTD) volume is down almost 8-9 percent.

"I do not see a substantial upside from current levels looking at the demand scenario in the near-term and the kind of cannibalisation Bajaj has been doing like launching Pulsar 135cc models where it used to be a 180cc plus brand. So those kind of steps and launching various variants of Discover is going nowhere and also export markets because of those import duty increase across Sri Lanka, Egypt, Algeria. These kind of things are only questioning their sustainability of 15 percent plus export growth. So all those things are the negative part of the business model at current juncture. So if rupee tomorrow appreciates back to 58 level that will be the last thing Bajaj Auto will ask for," he added.