Bajaj Defies Auto Rout
Bajat Auto Ltd. has defied the gloom for India’s automobile stocks.
Shares of the maker of Pulsar motorcycles rose 4 percent and 8.4 percent in the last six months and one year, respectively. That makes it the only automaker to return gains. Shares of all its peers fell and the benchmark BSE Auto Index declined during the two periods.
Promoters buying shares from the open market, increase in share in the market because of the focus on low-cost motorbikes and new launches helped Baja Auto turn the tide.
Bajaj Holdings, led by Rahul Bajaj, increased stake in company to 51.2 percent as of March from 49.3 percent in December.
The automaker also gained market share in the two-wheeler segment, helped by a 29 percent growth in domestic sales and 22 percent rise in exports—the best among peers.
As stricter emission standards roll out from April next year, auto companies have lined up new launches. According to Zigwheeles, Bajaj Auto plans to launch Pulsar RS400, Avenger 400 and the new Pulsar NS125 in the coming months. That’s likely to drive its volumes.