Bajaj Auto continues to be the second largest player in the domestic motorcycle segment and the largest exporter of two-wheelers in India, Axis Securities said in a note to the two-wheeler and three-wheeler maker. top stock picks Considering the ideal investment horizon of 6-9 months for this week.
The domestic brokerage firm believes that Bajaj Auto 2W is well positioned to capitalize on the demand normalization and premiumization trend in the industry, which should further support profitability and operating performance. In addition, “we expect the company to gain further market share in exports driven by its market leadership, brand equity and advanced distribution network,” Axis Securities said.
Bajaj Auto continues to be the preferred choice in the 2W segment given its reasonable valuations and strong medium-term growth prospects. Near Brokerage. Have a Buy rating on the stock with a target price of ₹4,250 per share.
Axis Securities expects Auto to deliver major profitable growth on the back of higher contribution of 3W in the form of improvement in domestic 2W profitability on account of a rich product, normalization of economy and continued cost reduction efforts by the company. Exports are the most important contributor to Bajaj Auto’s strong recovery. The company’s 2W exports outperformed domestic sales due to increasing market share in key export markets.”
Bajaj Auto will follow a 3-fold strategy to capture market share in the domestic 2W market – aggressive product launches in the 125 cc segment, maintaining a dominant position in the sports motorcycle segment and providing innovative offerings in the top-end of the entry motorcycle segment.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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