HOME   
   NEWS   
   BUSINESS   
   CRICKET   
   SPORTS   
   MOVIES   
   NET GUIDE   
   SHOPPING   
   BLOGS  
   ASTROLOGY  
   MATCHMAKER  


Search:



The Web

Rediff








Business
Portfolio Tracker
Business News
Specials
Columns
Market Report
Mutual Funds
Interviews
Tutorials
Message Board
Stock Talk



Home > Business > Stock Market News > Hot Pursuits

Bajaj Auto on rough turf

March 11, 2003 16:40 IST

Bajaj Auto is on the decline for the fourth consecutive session on Tuesday as geopolitical tensions dominate market psyche prompting selling.

The scrip of the two- and three-wheeler major shed 3.62% to Rs 467 by 13:26 IST. A total of 62,111 Bajaj Auto shares were traded on BSE thus far. The scrip of Bajaj Auto has already lost 9.26% from Rs 514.70 on 5 March 2003.

Dealers say players are offloading positions, as they do not have any clue about what trend the market will take over the next few sessions. But, alternatively, some are assuring there is nothing to panic about. A wait and watch policy is recommended, untill some material development takes place on the US-Iraq crisis front. The scrip has also been perhaps daunted by the specific announcement by the company that it will fall short of the targeted 1.5 million two- and three- wheelers in sales this fiscal (2002-03) by about 2% due to declining demand for geared scooters and mopeds. The company had set a sales target of 1.5 million two- and three-wheelers for the year ending 31 March 2003. In particular, the lack of demand in the north Indian market during the post-Diwali season and a drop in sales of geared scooters and mopeds have been blamed for the expected target shortfall.

For 2002-03, BAL, India's second largest two-wheeler maker, intended to sell about 900,000 motorcycles, 250,000 geared scooters, 70,000 automatic scooters, 50,000 mopeds and 196,000 three-wheelers. Bajaj Auto announced that it notched up motorcycle sales of 76,661 units in February 2003 from 62,586 units sold in the same month a year ago.

The company sold 1,14,114 two- and three-wheelers in February 2003 from 1,14,281 in February 2002. In a key development for the company, Bajaj Auto's representatives are meeting counterparts from Japanese motorcycle company Kawasaki Heavy Industries today to discuss possible partnerships. Kawasaki already provides technology for Bajaj Auto's major motorcycle offerings. Last week, the company opened offices in Indonesia and South America as part of initial plans to set up bases in those markets. The company has also just launched its new model, Caliber 115, in Pune. The 125-cc Kawasaki global bike is slated for launch shortly. A one-tonne three-wheeler goods carrier with the high performance Kubota diesel engine is also expected shortly. The company recently launched a new 100 cc bike, Byk (code named CBM). BAL is believed to be on the lookout for collaborations with companies in Indonesia for assembling its bikes like Caliber, Boxer and Pulsar there. The company plans to generate 15-20% of its business from the overseas market by 2005. It is also keenly following various African markets for the second phase of its overseas thrust. BAL continues to be a market leader in the entry level and performance segment in respect of bikes, with a greater product and marketing focus being brought in in the executive segment - which is represented by the Caliber and Croma.

Recently, BAL launched a bike called Boxer AR with a reinforced frame and stronger shock absorbers, targeted at the semi-urban and rural markets. Meanwhile, Bajaj's Pulsar continues to dominate the performance and power segment of the motorcycle market. Within a short span of time, Pulsar has achieved sales of around 15,000 units per month. For Q3 ended 31 December 2002, BAL registered a 24% rise in net profit to Rs 134.02 crore (Rs 1.34 billion), compared to Rs 108.17 crore (Rs 1.08 billion) in the corresponding period of the previous year. Sales increased by 13.15% to Rs 1,273.46 crore (Rs 12.73 billion), from Rs 1,125.38 crore (Rs 11.25 billion) in DQ 2001.

BSE code: 500490

More Hot Pursuits

Source: www.capitalmarket.com

Intra-Day Market Report



Article Tools

Email this Article

Printer-Friendly Format

Letter to the Editor



Related Stories


Bajaj Auto skids

LML hits accelerator on sales jump

Bajaj plant back to 6-day week








HOME   
   NEWS   
   BUSINESS   
   CRICKET   
   SPORTS   
   MOVIES   
   NET GUIDE   
   SHOPPING   
   BLOGS  
   ASTROLOGY  
   MATCHMAKER  
© 2003 rediff.com India Limited. All Rights Reserved.