homemarket NewsBajaj Auto shares gain as CLSA says 'buy' on steady results and improving volume outlook

Bajaj Auto shares gain as CLSA says 'buy' on steady results and improving volume outlook

The stock was trading 0.1 percent up at Rs 3,882 at the time of writing. The shares of Bajaj Auto rose as much as 1.4 percent in the previous session. 

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By CNBCTV18.com Jul 28, 2022 11:21:48 AM IST (Published)

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Bajaj Auto shares gain as CLSA says 'buy' on steady results and improving volume outlook
Shares of Bajaj Auto rose almost a percent to Rs 3,912.25 in the early trade on Thursday after brokerage house CLSA maintained a "buy" rating on the stock on the back of steady results with an improving volume outlook.

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CLSA, however, revised its target price to Rs 4,677, down from the previous target of Rs 4,774.
The automotive major's stock was trading 0.1 percent up at Rs 3,882 at the time of writing. Shares of Bajaj Auto rose as much as 1.4 percent in the previous session.
Bajaj Auto reported a 10.6 percent year-on-year (YoY)  rise in net profit at Rs 1,173 crore for the first quarter ended June 30, 2022. Total income stood at Rs 8,005 crore, up 8.4 percent against Rs 7,386 crore in the corresponding period of the preceding fiscal year.
The company's EBITDA (earnings before interest, taxes, depreciation, and amortisation) jumped 15.9 percent to Rs 1,297 crore, and EBITDA margin stood at 16.2 percent in the first quarter.
Muted domestic demand coupled with a shortage of semiconductor chips in the two-wheeler segment led to an 8.21 percent decline in the company’s two-wheeler volume on a year-on-year (YoY) basis. Although the situation improved in the latter part as new supply sources were developed, Bajaj Auto said.
The company on Wednesday told CNBC-TV18 that the company has mitigated the issues arising due to semiconductor shortage through alternate sourcing and that the crisis is near its end.
"Our quarter one was defined by tremendous shortages on the semiconductor side, which we have now mitigated through broad-basing our sourcing and all those plans have now come into effect," said Rakesh Sharma, ED, Bajaj Auto, in an interview with CNBC-TV18.
 

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