Bajaj Auto shares hit their new all-time high of Rs 2,948 on Wednesday. According to Reuters, price volume trend indicator (PVT) of Bajaj Auto is also at a record high, suggesting price rise is supported by volume. At 1.03 pm, shares of the auto major were trading 1.85 per cent up at Rs 2928.75. The scrip opened the day at Rs 2878 and has touched a high and low of Rs 2948 and Rs 2878, respectively, in trade so far. Later, the scrip closed 1.99 per cent up at Rs 2932.90.
Bajaj Auto reported 13.77 per cent rise in consolidated net profit at Rs 1039.70 crore for the quarter ended June 30, 2016 against Rs 913.86 crore in the corresponding quarter a year ago. Net sales of Bajaj Auto also jumped by 2.78 per cent year-on-year to Rs 5,643.61 crore for the quarter under review against Rs 5,490.85 crore in the same quarter last year. Operating profit of Bajaj Auto jumped by 6.33 per cent year-on-year to Rs 1,443.07 crore for the quarter under review.
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In the past one year, shares of Bajaj Auto jumped by 13.66 per cent to Rs 2875.65 till August 16, whereas BSE Sensex gained marginally 0.67 per cent during the same period.
Brokerage firm KR Choksey Shares and Securities is bullish on Bajaj Auto shares with a target price of Rs 3,331. The brokerage house in a research report said, “Bajaj Auto’s newer launches of bikes across all segments will help company gain market share and insure its growth for near future. We believe Bajaj Auto’s differential offering in form and offer superior mileage and performance as compared to existing product in the segment is a game changer. We remain positive on the company as it is set to establish itself as an International player, KTM’s export to ASEAN nation remains a key trigger for the stock.”
Motilal Oswal is also positive on Bajaj Auto shares with a target price of Rs 2,944.