CLSA’s target price implies a potential downside of over 40% from Bajaj Auto’s closing levels on Monday.
Of the 45 analysts covering Bajaj Auto, 13 have a “sell” rating on the stock, 10 say “hold”, while 22 continue to maintain a “buy” rating on the stock.
Bajaj Auto and Triumph launched two motorcycles, the Speed T4 and the Speed 400 MY25, which have been positioned as entry-level motorcycles, using the Speed 400 as the foundation for the Triumph brand. CLSA believes that the Speed T4 is the right motorcycle with segment-leading performance, power specifications and an attractive price tag of ₹2.17 lakh.
Bajaj Auto delivered nearly 60,000 Triumph motorcycles in fiscal year 2024.
CLSA wrote in its note that while the launch looks promising, the company remains cautious due to increasing competitive intensity in the premium motorcycle segment, moderating growth in the above 250cc motorcycle segment and continued pressure in key export markets.
In an interaction with CNBC-TV18 on September 3, Bajaj Auto CEO Rakesh Sharma said Nigerian retail sales have touched 20,000 units after a while and the company expects further improvement in sales during the rest of the year.
Bajaj Auto shares closed 2% higher at Rs 11,925 on Tuesday. The stock has already gained 78% so far in 2024, which will be one of the best calendar year results for the company.
The stock is also trading well above its share buyback price of ₹10,000 apiece. The buyback was done earlier this year.
First published: September 18, 2024 8:48 am IS
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