Long term Buy Call For Bajaj Auto

Long term Buy Call For Bajaj Auto Technical analyst Anita Gandhi of Arihant Capital Markets is bullish on Bajaj Auto Limited and has maintained 'buy' rating on the stock with a target of Rs 1630.

The analyst also said that the said target can be achieved in a period of 12 months.

Today, the stock of the company opened at Rs 1408 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 1664.50 and a low of Rs 989 on BSE.

Current EPS & P/E ratio stood at 86.91 and 16.26 respectively.

As per reports, Bajaj Auto is ready to take on Hero Honda and HMSI with its fresh launchings that will activate an immense price battle in the 125 CC and 150 CC sections.

The reports added that Bajaj Auto is all set to roll out a new Discover, a 125-CC bike.

Bajaj already has a 100-CC and 150-CC bikes as far as the Discover range is related.

Averagely, the company is selling around 1,10,000 units of both 100 and 150-CC Discover.

The company will introduce a new Boxer by July, The new Boxer, a 150-CC bike, will be priced around Rs 40,000.

For Oct-Dec 2010 period, Bajaj Auto registered a growth of 40.40% in its net profit, which stood at Rs 6,671.10 million as against Rs 4,751.40 million for the corresponding period of 2009.

Company's total income surged 28.40% to Rs 42,765.40 million for the three month period ended December 2010.