Shares of Bajaj Auto Ltd. have given up gains and have dropped to the day’s low after brokerage firm UBS said that it has cut the price of its Freedom 125 motorcycle within five months of its launch.
UBS wrote in a note that the prices of Freedom 125 entry-level variant by ₹5,000, while that of the mid-level variant has been cut by ₹10,000.
UBS also said that select Pulsar variants have also seen a price cut post Diwali.
In an interaction with CNBC-TV18 on Tuesday, Bajaj Auto Executive Director Rakesh Sharma said that the company will try to beat industry growth with the upcoming new launches.
Exports are a key component for Bajaj Auto and Sharma said that the retail sales in Nigeria are at 36,000 for November, and that he hopes to hold steady at the same figure in the month of December.
Out of the 47 analysts that have coverage on Bajaj Auto, 20 of them have a “buy” rating on the stock, 11 of them say “hold,” while 16 of them have a “sell” recommendation on the stock.
UBS has a sell recommendation on Bajaj Auto with a price target of ₹7,800.
Shares of Bajaj Auto are down 2% at ₹8,983. The stock has seen a correction of over 30% from its recent peak of ₹12,773.
This is a developing story.
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