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Bajaj Auto speeds up on plan to make low-cost car

Capital Market / 10:08 , Mar 19, 2010

Bajaj Auto rose 1.83% to Rs 1873.40 at 10:05 IST on BSE, on reports the company in joint venture with Nissan Motor and Renault, is working to make a car that will match the price of Tata Motor's Nano, the cheapest car in the world at about $2,500.

Meanwhile, the BSE Sensex was up 39.28 points, or 0.22% to 17,558.54.

On BSE, 10,834 shares were traded in the counter as against an average daily volume of 68,903 shares in the past one quarter.

The stock hit a high of Rs 1878.80 and a low of Rs 1846 so far during the day. The stock had hit a lifetime high of Rs 1930.35 on 8 March 2010. It had hit a 52-week low of Rs 532 on 20 March 2009.

The large-cap stock had underperformed the market over the past one month till 18 March 2010, gaining 1.30% as compared to the Sensex's 7.30% rise. It had outperformed the market in the past one quarter, rising 7.96% as compared to the Sensex's return of 4.78%.

The company's equity capital is Rs 144.68 crore. Face value per share is Rs 10.

The current price of Rs 1873.40 discounts the company's Q3 December 2009 annualized EPS of Rs 131.36, by a PE multiple of 14.26.

Bajaj Auto's total vehicle sales surged 75% to 2.68 lakh units in February 2010 over February 2009. The company's motorcycle sales soared 78% to 2.34 lakh units, while 3-wheeler sales advanced 59% to 33,968 units in February 2010 over February 2009. Exports increased 53% to 77,642 units in February 2010 over February 2009.

Bajaj Auto's net profit soared 189.2% to Rs 475.14 crore on a 57.9% rise in sales to Rs 3165.84 crore in Q3 December 2009 over Q3 December 2008.

Bajaj Auto manufactures and distributes motorcycles and three-wheelers.

 



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