In 2023, Bajaj Auto was the second-best performer on the Nifty, gaining virtually 98 p.c
Shares of Bajaj Auto noticed a 3 p.c decline, buying and selling at Rs 7,081 throughout the morning session on January 17. This downturn adopted a downgrade by the home brokerage agency CLSA, which shifted the inventory ranking from ‘underperform’ to ‘promote,’ citing issues about valuation.
Analysts on the agency have stated that the inventory is overvalued given the latest rally the counter witnessed. Additional, the brokerage agency has turned cautious as valuations are pricing in double-digit quantity progress over the following few years, which appears unlikely.
At 10:37 am, the inventory was buying and selling at Rs 7,131, down 2.3 p.c from the earlier shut on the NSE. In 2023, Bajaj Auto was the second-best performer on the Nifty, gaining virtually 98 p.c, trailing solely one other car main — Tata Motors.
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CLSA has additionally revised its goal value to Rs 6,315. This means a draw back of 13.4 p.c from the earlier shut of Rs 7,293. They’ve additionally reduce the two-wheeler and three-wheeler main’s quantity estimates by 5 p.c and 6.5 p.c for FY24, and FY25, respectively.
Earlier, on January 8, the Bajaj Auto board authorized a Rs 4,000-crore share buyback at Rs 10,000 per share, at a premium of 43 p.c. Bajaj Auto will purchase 40 lakh shares by the tender route, or 1.41 p.c of the overall excellent shares.
This was Bajaj Auto’s second share buyback in as a few years. The auto main had in July 2022 bought shares price Rs 2,500 crore from holders at Rs 4,600 a unit.
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