(Reuters) – Shares of India’s Bajaj Auto rose more than 4% in early trade on Wednesday, as analysts flagged a healthy near-term domestic demand and export outlook for the two-wheeler maker.
The shares were leading gains in the benchmark Nifty 50 index, which was up marginally, and were among the top gainers in the auto index, which rose 0.6%.
The ‘Pulsar’ motorcycle manufacturer’s profit rose 3.3% to 21.09 billion rupees (around $244 million) for the October-December quarter, missing analysts’ estimates.
Bajaj Auto also posted its slowest profit growth in nearly two years but the company forecast a 20% growth in exports in the next few months, led by demand from Latin America and Southeast Asia.
“We remain positive on (Bajaj’s) growth outlook for both domestic and export two-wheelers,” analysts at Jefferies said in a note.
Bajaj Auto expects its margins to sustain, if not expand, as its EV business, particularly the ‘Chetak’ electric scooter stable, has begun to turn a profit.
Two-wheeler exports contribute more than a third to Bajaj Auto’s overall sales.
Its shares were last 4.2% higher at 8,740 rupees. They have fallen 0.7% so far this month compared with a 1.1% drop in the auto index.
Meanwhile, shares of rival two-wheeler maker TVS Motor Company jumped over 7%, adding to 5% gains on Tuesday after the company posted upbeat margins despite missing analysts’ profit estimates.
(Reporting by Manvi Pant and Sethurman NR in Bengaluru; Editing by Mrigank Dhaniwala)
