Bajaj Auto rides on strong May sales, stock touches 52-week high

Shares of Bajaj Auto extended gains from the previous session and climbed to a 52-week high in early trade on June 2. This comes on the back of an upbeat sentiment for the stock after the two-wheeler company posted a rise in total sales during May.

At 10.08 am, shares of Bajaj Auto were trading at Rs 4,676.20 with gains of around 1 percent on the National Stock Exchange. The stock also hit a 52-week high of Rs 4,707 earlier today.

On June 1, Bajaj Auto reported a 23 percent jump in total sales to 3,55,148 units in May against 2,75,868 units in the same month last year. The rise in total sales was aided by a strong rebound in the domestic market.

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The domestic sales were up over twofold on year to 2,28,401 units versus 1,12,308 units in the year ago period. This increase is remarkable, especially given the fact that the company has been struggling with sluggish domestic demand, primarily in rural areas in the recent quarters.

During an interview with CNBC-TV18, Rakesh Sharma, the Executive Director of Bajaj Auto, highlighted that the domestic segment exhibited robust performance, largely attributed to the exceptional performance within the 125cc segment.

Also Read: Bajaj Auto share price gains nearly 2% on better sales data

However, exports still remained under pressure and were down 23 percent at 1,26,747 units against 1,63,560 units on a year-on-year basis.

Bajaj Auto reported a consolidated net profit of Rs 1,704.74 crore for the quarter ended March, indicating an increase of 11.70 percent compared to Rs 1,526.16 crore during the corresponding quarter of the previous fiscal. The company’s revenue from operations reached Rs 8,929.23 crore, reflecting a growth rate of 11.96 percent compared to Rs 7,974.84 crore in the same quarter of the previous year.

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