Jefferies has underperform on Bajaj Auto, target price Rs 2,650
Underperform Bajaj Auto Ltd. at a price target of Rs 2650.0 .
For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 7565.01 crore, up 4.70% from last quarter sales of Rs 7225.20 crore and up 4.10 % from last year same quarter aales of Rs 7267.19 crore. The company has reported net profit after tax of Rs 1020.78 crore in the latest quarter.
Gradual ramp up means limited near-term financial impact, said Jefferies. Establishing a strong brand will be key but is not easy (return to "Chetak" brand notwithstanding) as Hero's case in ICE scooters suggests, said Jefferies.