Deutsche cuts Bajaj Auto shares to ‘hold’ on valuationshttps://indianexpress.com/article/business/market/deutsche-cuts-bajaj-auto-shares-to-hold-on-valuations/

Deutsche cuts Bajaj Auto shares to ‘hold’ on valuations

Investment bank also says Bajaj's domestic two-wheeler growth is seen at 2.7 per cent a year.

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.

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.