Bajaj Quadricycles, not enough to see a rally: Angel Broking

Views of Mr. Shrikant Akolkar (Research Analyst - Auto, Angel Broking):

"Bajaj Auto has been waiting for long to launch its quadricycle which has been delayed due to the regulatory hurdles. The company already has a capacity of about 25,000 quadricycles and it currently exports its quadricycles to several countries. While this is sentiment booster news, it needs to be seen whether Bajaj's quadricycle is BS-IV compliant as this product has been developed several years earlier while BSIV norms kicked in this year.

In case of a positive regulatory ruling and at a 50% capacity sales in India, Bajaj can generate <1% of its revenue from this product so we don't believe that besides minor improving in the sentiment, there is not enough thrust in this to see a rally in the stock."

Shares of BAJAJ AUTO LTD. was last trading in BSE at Rs.3315.5 as compared to the previous close of Rs. 3292.6. The total number of shares traded during the day was 14587 in over 1013 trades.

The stock hit an intraday high of Rs. 3329.4 and intraday low of 3295. The net turnover during the day was Rs. 48371480.

Source : Equity Bulls

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