Why pundits are bullish on Bajaj Auto stocks


Bajaj Auto’s share price could see a steep rise in the near term as the Ministry of Road Transport approved the use of two-wheeled ambulances in India. According to stock market experts, the move will open up a large market for two-wheeled ambulances for car manufacturers, but Bajaj Auto will have an advantage as they have already supplied two-wheeled ambulances to the government of Andhra Pradesh. Thus, they already have the technology and infrastructure to start production and meet emerging demand in the near future. However, market experts have maintained that payment terms and working capital cycle will play a major role in the medium to long term as the government just announced the use of two-wheeled ambulances in India.

Bajaj Auto shares expected to rise in the near term; Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “The central government has approved the use of two-wheeled ambulances in India, which will open up a large market for two-wheeled ambulances in the domestic automotive segment. Since Bajaj Auto has already supplied two-wheeled ambulance to the government of Andhra Pradesh in 2018, they already have the technology and infrastructure to meet the sudden demand resulting from this government approval. Thus, we can expect a 3-5% increase in Bajaj Auto shares in the immediate future but in the medium to long term, the working capital cycle and payment terms on which the whole new market depends will go. play a major role. “

Bajaj Auto shares are expected to rise sharply in the near term; Sumeet Bagadia, Executive Director of Choice Broking, said: “Bajaj Auto can be priced at current market prices for the immediate short-term goal of ??3850 to ??3900 by maintaining the stop loss at ??3650. “

Pointing to long-term demand in Tier 2 and Tier 3 cities; Ravi Singhal, Vice President of GCL Securities, said: “The two-wheel ambulance will create demand in Level 2 and Level 3 cities where the roads are not much wider and the four-wheel ambulance struggles to reach the destination where the patient has to choose. The demand will concern both firefighters and the healthcare sector, as both use ambulances. Bajaj Auto has since had an advantage over its peers; this would certainly have a positive impact on the actions of the company. I would recommend stock market investors to buy long term Bajaj Auto shares at the current market price and keep accumulating until it is higher ??3600 per stock level. The stock can go up to ??4,400 over the next 12 months. “However, Ravi Singhal strictly advised long-term investors to hold the stop loss at ??3370.

To subscribe to Mint newsletters

* Enter a valid email address

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our app now !!

Previous Poachers caught with west coast lobsters in Cape Point Marine Protected Area
Next QR codes replace service personnel as pandemic spurs automation in US

No Comment

Leave a reply

Your email address will not be published. Required fields are marked *