Deutsche cuts Bajaj Auto shares to ‘hold’ on valuations

Deutsche Bank downgrades Bajaj Auto Ltd to “hold” from “buy” and cuts the target price on its stock to 2,000 rupees from 2,250 rupees,saying current valuations have already priced in a “robust” margin trend.

The investment bank also says Bajaj’s domestic two-wheeler growth is seen at 2.7 per cent a year till fiscal year 2016 compared with 8.8 per cent for the industry.

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Deutsche says the bike maker is also underperforming in the faster-growing domestic segment of 125 cc motorcycles.

Bajaj Auto shares are up 0.05 percent at 1007 am.