09
Jan
12

Bajaj Auto December numbers..

Bajaj Auto posted lower than expected sales figures for December. The company shares fell sharply after sales figures announcement.The two wheeler company sold 305,690 units showing growth of 10 percent over the last year. It was below market expectations. Two wheeler companies like Hero Motocorp, Bajaj Auto and TVS Motors were trading at premium valuations as compared to Four wheelers like Maruti and Tata Motors. This premium was given on account of expected double-digit growth. But if the two-wheeler companies are also struggling and showing growth in single digit, then the premium valuation is unjustified.

I had sold Bajaj Auto calls aggressively last week. I don’t think company shares can rise sharply 13-15% from current levels in January series.

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