Morgan Stanley has maintained an overweight rating on Bajaj Auto, setting a target price of Rs 11,389. The company noted that retail sales during the initial phase of the festive season have been slower than expected, with industry growth likely to come in at around 5%, compared to the market’s estimate of 8-10%.
Despite this, Bajaj Auto’s management aims to maintain margins at current levels, indicating that the rise in electric vehicle (EV) sales could offset the potential mix gains from other segments.
The stock’s current market price (CMP) is Rs 11,622.50, with markets yet to open.
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