Mr. Jyoti Roy - DVP - Equity Strategist, Angel Broking Ltd
Bajaj Auto reported a mixed set of numbers for Q2FY2021 as revenues declined by 7.2% YoY growth to ₹7,156 crore for Q2FY21. EBIDTA for the quarter stood at ₹1,266 crore down by 0.9% YoY while EBIDTA margins expanded by ~`111bps YoY to 17.7%. Net profits for the quarter was down by 18.8% YoY on account of lower other income and higher tax rates for the quarter. While the topline and profits were marginally below street expectations the company has surprised positively on the margins front. The management has attributed the improvement in margins to better performance by the two wheeler segment as the high margin three wheeler segment remained under pressure. Key to future stock performance will be sustainability of demand in domestic two wheeler markets post the festive season and recovery in domestic three wheeler market.
Shares of BAJAJ AUTO LTD. was last trading in BSE at Rs.2997.2 as compared to the previous close of Rs. 3016.35. The total number of shares traded during the day was 48079 in over 5332 trades.
The stock hit an intraday high of Rs. 3037.95 and intraday low of 2977. The net turnover during the day was Rs. 144708171.