Bajaj Auto defies market sentiment; slips nearly 3 pc in early trade

| | Mumbai
  • 0

Bajaj Auto defies market sentiment; slips nearly 3 pc in early trade

Monday, 20 May 2019 | PTI | Mumbai

Bajaj Auto defies market sentiment; slips nearly 3 pc in early trade

Shares of Bajaj Auto defied the broader market sentiment Monday and fell nearly 3 per cent in morning trade on bourses.

Market experts said, 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.

The shares of Bajaj Auto opened at Rs 3,071, but lost ground and touched Rs 2,953.95, down 2.88 per cent over its previous close of Rs 3,041.80.

Shares of the company were later trading at Rs 2,992.10, down by Rs 49.70, or 1.63 per cent at 1021 hrs.

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.

Edelweiss Research further noted that, a subdued demand environment, costs related to the entry in middle/executive segment (current market share of around 3 per cent) and technological changes due to BSVI will restrict margin to the current level.

Bajaj Auto Friday reported a 19.82 per cent increase in consolidated net profit at Rs 1,408.49 crore for the fourth quarter ended March 31, 2019.

Meanwhile, the BSE benchmark Sensex was trading with gains of 903.70 points or 2.38 per cent at 38,834.47 in early hours.

 

Sunday Edition

CAA PASSPORT TO FREEDOM

24 March 2024 | Kumar Chellappan | Agenda

CHENNAI EXPRESS IN GURUGRAM

24 March 2024 | Pawan Soni | Agenda

The Way of Bengal

24 March 2024 | Shobori Ganguli | Agenda

The Pizza Philosopher

24 March 2024 | Shobori Ganguli | Agenda

Astroturf | Lord Shiva calls for all-inclusiveness

24 March 2024 | Bharat Bhushan Padmadeo | Agenda

Interconnected narrative l Forest conservation l Agriculture l Food security

24 March 2024 | BKP Sinha/ Arvind K jha | Agenda