Buy Bajaj Auto With Target Of Rs 1345

Buy Bajaj Auto With Target Of Rs 1345Technical analyst Salil Sharma maintained 'buy' rating on Bajaj Auto Limited stock with a target of Rs 1345.

According to analyst, the stock can be purchased with a stop loss of Rs 1295.

The stock of the company, on January 19, closed at Rs 1319.85 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 1664.50 and a low of Rs 830 on BSE.

Current EPS & P/E ratio stood at 81.86 and 15.83 respectively.

Bajaj Auto recorded a 40% increase in its net profit during the third quarter, which ended on December 2010.

India's second-largest two-wheeler manufacturer said that it registered such an increase on the back of higher sales of motorcycles plus commercial vehicles.

The Pune-headquartered firm stated that its quarterly net profit remained at Rs 667 crore as compared to Rs 475 crore during the corresponding period of 2009.

The company's sales income during the period under review surged 27% to Rs 4028 crore as against Rs 3166 crore in October-December 2009.

The company's spending on raw materials including rubber, steel and plastics during the December quarter climbed 33% to Rs 2784 crore.

The company said, "The quarter witnessed an all round increase in input cost. In this challenging environment, the company's focus on high-end motorcycles enabled it to maintain margins in excess of 20%."