Leading brokerage house Nomura has
downgraded Bajaj Auto to 'neutral' from 'buy'.
A Reuters report says the auto maker's valuations of 15.5 times fiscal 2014 earnings have priced in expectations of improving market share and was behind the cut in Nomura's outlook for the company.
The downgrade comes even as the brokerage house says it still believes
Bajaj Auto can continue to beat market leader Hero MotoCorp over the next few months.
Bajaj Auto has gained 30.8 per cent so far this year versus a 25 per cent gain in the BSE Sensex and a fall of 2.2 per cent in Hero MotoCorp.
Shares of Bajaj Auto were trading 1.39 per cent higher on the Bombay Stock Exchange in afternoon trade at Rs 2,109.10. The scrip was up 1.53 per cent at Rs 2,113.15 on the National Stock Exchange.
With inputs from agenciesDisclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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