Citi has maintained a sell rating on Bajaj Auto with a target price of Rs 7,800 after the company’s second-quarter results came in marginally below expectations. The brokerage highlighted a slight miss in Average Selling Prices (ASPs) and gross margins as key reasons for the rating.
Bajaj Auto’s management has expressed confidence in the company’s electric two-wheeler (E2W), compressed natural gas (CNG) bike, and three-wheeler (3W) segments, while noting signs of recovery in exports. However, Citi mentioned a surprise in the management’s festive demand outlook, where volumes were reported to be up only 1-2% compared to last year, despite VAHAN data indicating vehicle registrations are up nearly 12% year-on-year.
The current market price (CMP) for Bajaj Auto is Rs 11,622.50, with markets yet to open for the day.
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