Bajaj Auto shares gain after reporting strong May sales data; analysts say ‘buy’

NEW DELHI: Shares of climbed nearly 3 per cent to inch closer to its 52-week high level after the sales in May more than doubled from last year. Analysts are also positive on the scrip.

Sales of two-wheelers jumped 113 per cent to 240,554 units, while commercial vehicle sales for the company rose 118 per cent to 31,308 units. The company reported domestic growth at 52 per cent to 60,830 units. On the export front, the company reported strong growth of 142 per cent at 2,11,032 units.

These numbers, however, are not exactly comparable as India was under a strict lockdown during the first half of May 2020; so sales were naturally down.

“In the month of May 2021, Bajaj Auto’s auto sales number came in-line with our estimates. Considering strong growth in domestic and export business, we are positive on stock with a buy rating,” said Amarjeet Maurya – AVP – Mid Caps, Angel Broking.

Bajaj Auto has been the pick of the sector as it has huge cash reserves, while its customer base is also from diverse geography, mitigating the impact of second wave in India.

On Tuesday, shares of the automaker climbed 2.7 per cent to Rs 4,302.65 on the BSE. It is trading close to its 52-week high of Rs 4,361.20.

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