Bajaj Auto stock falls 2% after price cuts on Freedom 125 bikes

Bajaj Auto shares saw a 2% diminution connected December 4, pursuing reports that the institution had slashed prices for its Freedom 125 motorcycles. This terms simplification comes conscionable 5 months aft the bike’s launch. UBS Securities noted that the entry-level variant of the Freedom 125 saw a Rs 5,000 terms cut, portion the mid-level variant was reduced by Rs 10,000. Additionally, Bajaj Auto had besides chopped prices for immoderate Pulsar models aft Diwali.

Investors reacted negatively to this terms drop, perchance made to wide retired inventory, which led to a dip successful the stock. As of 12:21 pm, Bajaj Auto’s shares were trading astatine Rs 8,995.85 connected the NSE. This driblet erased the stock's play gains, pushing it into the reddish for the day.

The company's home income faced a setback, slipping 7% year-on-year successful November, contempt the festive season. Bajaj Auto sold 2.40 lakh units successful November, down from 2.57 lakh units successful the aforesaid period past year. This diminution successful income was anticipated owed to a precocious basal from the erstwhile twelvemonth and the earlier timing of the Diwali festivities.

While home income lagged, Bajaj Auto's exports showed growth, signaling a 24% year-on-year summation astatine 1.80 lakh units. This boost helped the institution execute a 5% emergence successful full sales, which reached 4.22 lakh units successful November.

Despite these challenges, Rakesh Sharma, Executive Director astatine Bajaj Auto, remains optimistic astir the company's future. He stated successful a caller CNBC-TV18 interrogation that Bajaj Auto is aiming to outperform the industry’s projected 6-8% maturation by capitalizing connected caller launches. Key to this strategy are innovative products similar the Freedom CNG motorcycle and caller additions to the Pulsar lineup. Bajaj Auto is besides focusing connected strengthening its beingness successful the increasing 125cc and supra segment, wherever it holds a 24-25% marketplace share, conscionable down the marketplace leader.