It recently signed a pact with the Maharashtra government to set up a ₹650 crore manufacturing unit in Chakan. The plant, with a capacity to build up to a million motorcycles a year, would make premium motorcycles under the KTM, Husqvarna and Triumph brands along with electric scooters
MUMBAI: Amid a surge in domestic equity markets, Bajaj Auto Ltd on Tuesday joined the elite club of companies with over ₹1 trillion in market capitalisation.
This is the fourth automobile company to have achieved the milestone, others being Maruti Suzuki India Ltd, the most valued auto company in India, Mahindra & Mahindra Ltd, and Tata Motors.
The Bajaj Auto stock touched a record high of ₹3,459.90 apiece on the BSE, with a market cap of ₹1.01 trillion. At 0950 am, the scrip traded at ₹3,451, up 1.1% from its previous close. So far this year, the stock has gained 8.3%.
Analysts say the firm has been witnessing steady recovery in sales, aided by a pick-up in consumer demand as the country gradually looks to come out of lockdown. Recent sales data shows that its exports have also been strong.
"Gradual restoration of supply chain and utilisation levels improving at its plants, we expect volumes to reach prior year levels, along with faster recovery expected in two wheelers" said Arihant Capital in a note.
Bajaj Auto has also signed a pact with the Maharashtra government to set up a ₹650 crore manufacturing unit in Chakan.
Its investment in a new plant for premium motorcycles underscores its optimism about the continued growth potential of this segment in India and overseas, Rakesh Sharma, the company’s executive director, had said in an interview to Mint.
The plant, with a capacity to build up to a million motorcycles a year, would make premium motorcycles under the KTM, Husqvarna and Triumph brands along with electric scooters. The plant is scheduled to open by the second half of FY2022-23