Moneycontrol Bureau
Shares of Bajaj Auto rose 2 percent intraday on Monday after it bagged an order for 1.25 lakh units of Discover-125M motorcycles from Sri Lankan government.
The company through its distributor David Pieris Motor Company in Sri Lanka had secured, after a detailed evaluation process by the Government of Sri Lanka, an order from them for supply of around 50,000 units of Discover-125M motorcycles.
The company has already supplied 48,000 units successfully against this order, Bajaj Auto said. Discover-125M is priced up to Rs 50530 (ex-showroom Delhi).
However, analysts are not very enthused about the stock. Macquarie maintains underperform rating with a 12-month target price of Rs 1,850 per share on worries that headwinds due to rising competition in motorcycles.
Morgan Stanley also maintains underweight as it feels the auto major's current export run-rate will slow down and gaining share in domestic market will be tough for it. The brokerage also feels that valuations are pricing in the best-case scenario.
Goldman Sachs reiterates sell rating. It cautions that weakness in Discover portfolio may give opportunity to TVS and exports also may be under pressure.
At 11:02 hrs Bajaj Auto was quoting at Rs 2,471.20, up Rs 4.90, or 0.20 percent on the BSE
(Posted by Nasrin Sultana)
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