Bajaj Auto share price: Shares of automaker Bajaj Auto gained the most in nearly two months, rising 3.8% on the domestic bourses on Friday after the company announced plans to expand its 3-wheeler and quadricycle capacity to one million per year. Bajaj Auto shares rose 3.8% on the BSE to a high of Rs 2,889 per share in early morning deals on Friday. On the National Stock exchange, shares of the automaker edged higher by 3.82% to a high of Rs 2,889.50 — its highest in seven weeks.
On Thursday, Bajaj Auto announced its capacity expansion plans following the government’s decision to exempt electric vehicles and automobiles run on alternative fuel from permit requirements. In a statement, Bajaj Auto said it had sold 4.35 lakh 3-wheelers between September 2017 and August this year, registering a growth of 88% over the year-ago period.
“Bajaj Auto will be the biggest beneficiary from abolition of permit requirement as it commands 86% market share in the alternate fuel 3W segment,” Abhishek Jain, Analyst at HDFC Securities, said in a note. “YTD FY19, Bajaj Auto witnessed 64% jump in 3W sales at 338k units (domestic 63% at 167.7k and export 65% 170k). Market share also rose in the 3W PC/GC segment, to 67/25% from 60.6/17% YoY,” he added.
HDFC Securities has maintained a “buy” on the stock with a target price of Rs 3,394. On Friday, Bajaj Auto emerged as the top gainer on both BSE Sensex and NSE Nifty 50 indices. At the time of reporting, shares of Bajaj Auto were trading higher by 3.42% at Rs 2878.55 on the Sensex, while on Nifty 50, the shares rose 3.46% to Rs 2,879.40 per share. However, as of its previous session’s close, the stock has lost over 16% this year.