08 Jul , 2024 By : Debdeep Gupta
Shares of Bajaj Auto Limited traded more than one percent lower to Rs 9,534 in morning trade on July 8 after international brokerage UBS gave a 'sell' call on the counter following the company's CNG bike launch, the first of its kind in India.
UBS has assigned a target price of Rs 6,250, implying a downside potential of 35 percent from the current market levels.
UBS believes the future remains in electric vehicles (EVs) and that CNG motorcycles won't slow down the market's electrification. The Triumph-maker recently launched a 125cc CNG motorcycle priced between Rs 95,000 and Rs 1,10,000.
However, the introduction of CNG bikes is expected to impact the 100-110cc and entry-level 125cc motorcycle segments in the medium term, where Hero currently holds a 66 percent market share.
Bajaj Auto reported a 5 percent year-on-year growth in total vehicle wholesales, including exports, reaching 3,58,477 units in June. The Pune-based automaker sold 3,40,981 two-wheelers and commercial vehicles in June 2023, official data showed.
Total domestic sales, including commercial vehicles, rose 8 percent to 2,16,451 units compared to 1,99,983 units in the same month last year. Total exports increased by 1 percent to 1,42,026 units from 1,40,998 vehicles in the year-ago period.
At 9:50 am, shares of the two-wheeler major were trading at Rs 9,580, down 0.7 percent from the last close on the NSE. The Bajaj Auto share price has been on a stellar run, rising a massive 41 percent since the start of the year.
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