Bajaj Auto Ltd shares zoomed nearly 2 percent today and currently trade at Rs 4,264. The scrip marked its 52-week high mark at a price of Rs 4,277.90. Additionally, the stock is near its all-time high figure which was recorded in February 2021 at Rs 4,361.20. In just five trading sessions, the stock has gained nearly 7 percent ranging from Rs 3,983 to current levels.
One of the probable reasons for such a rally is with respect to the announcement made by the company, through an exchange filing, mentioning the completion of a successful transfer of Triumph Motorcycles Ltd’s India Sales & Marketing operations. Effective from 1st April 2023, a new phase of partnership starts with 15 Triumph Motorcycle dealerships managed by Bajaj Auto.
“We are very excited that the time to bring the results of the joint work of Triumph & Bajaj Auto teams is drawing closer. We welcome the Triumph dealerships into the Bajaj Auto family and offer them an opportunity to further build their business as the portfolio expands. We will also leverage our formidable distribution network to rapidly expand the exclusive Triumph stores in India in preparation for the soon-to-be-launched, exciting new motorcycles.” – commented Mr. Rakesh Sharma, Executive Director of Bajaj Auto.
Bajaj Auto Ltd, headquartered in Pune, Maharashtra, is an automotive manufacturer engaged in the business of developing, manufacturing, and distributing automobiles such as two-wheeler motorcycles, three-wheeler motorcycles, and commercial vehicles. The company also manufactures and markets various spare parts and accessories.
Its product portfolio includes Avenger, Pulsar, Discover, Platina, Ninja, CT, KTM, and various other brand names. The company has manufacturing facilities in Maharashtra and Uttarakhand in India.
Having a quick glance at the financials, it can be observed that the revenue and net profit figures went down in the recent quarters with revenues going down from Rs 10,203 crores in Q2 to Rs 9,319 crores in Q3 and net profits shifting from Rs 1,521 crores in Q2 to Rs 1,473 crores in Q3.
On a contrary note, the profitability aspects such as the ROE and ROCE shifted upwards on a YoY basis. ROE increased from 19.86 percent in FY20-21 to 21.6 percent in FY21-22. ROCE moved from 25.41 percent in FY20-21 to 26.7 percent in FY21-22.
Promoters of the company hold a 54.98 percent stake according to the data available for the December 2022 quarter. FIIs have been observed with a consistent increase in stake and hold 11.82 percent as per the quarter mentioned above.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
