Bajaj Auto - Poor Numbers reflecting signs of weakened demand - Way2Wealth

Bajaj Auto Numbers are weak reflecting signs of poor demand, Inventory levels are up at 4-5 weeks from normal levels of 3 weeks

Motorcycle sales are at its lowest ever levels this FY, which has come as a negative surprise. The sales of new Pulsar 200 NS saw a 29% jump MoM at 7200 units and Discover 125ST saw a significant jump of 74% MoM at 25k units. Its leading brands Discover and Pulsar volumes were at 125k units and 70k units resp, while Boxer volumes were at 65k units.

However the cumulative growth for the company turns negative.

3W numbers have improved this month with numbers above its YTD average runrate. Infact numbers for August are at its highest ever levels considering FY.

Export offtake are above its YTD average runrate , but cumulative sales show a degrowth of 5%, which remains constant. Total 3W exports were at 22300 units (down 17% YoY, Up 30% MoM) indicating signs of normalcy at Sri Lanka and Egyptian markets.

Source : Equity Bulls

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