Bajaj Auto Up 3% Ahead of Q2 Earnings

Shares in Bajaj Auto gained over 3 per cent to Rs 2,429 on Tuesday ahead of its earnings for the quarter ended September 30, 2014.

The two-wheeler maker is likely to report 3 per cent year-on-year jump in its net profit to Rs 863 crore, a NDTV poll of analysts estimated.

Bajaj Auto has already reported a 10 per cent jump in its volume to 10,55,582 units led by strong growth in three-wheeler segment and exports in the September quarter. Its revenue is likely to grow 14 per cent y-o-y to Rs 5,775 crore in the quarter.

In another development Bank of America-Merrill Lynch has upgraded the stock to buy from underperform, citing higher volume and average selling prices, and increased contribution from dirt-bike making affiliate KTM.

The brokerage believes motorcycle share in total sales of Bajaj Auto is expected to reverse trend and its margins to rise 110 basis points over next two fiscals.

As of 10.35 a.m. shares in Bajaj Auto traded 2.82 per cent higher at Rs 2,415 apiece outperforming the Nifty which was down 0.3 per cent.

With inputs from Reuters