Mumbai: Analysts have raised price targets on Bajaj Auto after the company reported a 23% year-on-year rise in profit to a record Rs 1,556 crore for the December quarter. Shares of Bajaj Auto ended up 10.45% on the back of strong result and target price upgrades.
HSBC maintained a buy and raised target price to Rs 4,000 from Rs 3,500. Investec has raised target price to Rs 4,210 from Rs 3,515 while retaining a buy recommendation. “Bajaj’s strong beat in 3Q was driven by its premiumisation push and focus on exports. We believe it can offset the strong commodity headwinds with modest price hikes, improving product mix, and recovery in three-wheelers,” said Morgan Stanley, retaining overweight rating on the stock. Morgan Stanley has raised target price on the stock to Rs 4,400 from Rs 3,900.
Nomura has even upgraded the stock to buy from neutral and raised target price to Rs 4,403 from Rs 3,437. The foreign brokerage said exports recovery is likely to be stronger for Bajaj Auto.
