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The Economic Times

Jefferies has underperform on Bajaj Auto, target price Rs 2,650

Jefferies has an underperform rating on Bajaj Auto in the long term with a target price of Rs 2,650. Shares of Bajaj Auto ended up 3% at Rs 3,110.30 on Thursday while BSE Sensex closed 453.07 points up at 39,052.06.

Company Financials

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.

Investment Rationale

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.
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