Bajaj Auto skids on Nigeria

about 1 year ago
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The geopolitical situation in Nigeria, Bajaj Auto’s biggest export market has hit the production targets of the company. Given the civil uncertainties due to elections and demonitisation, there is unrest in Nigeria and it would take a while before things return to normalcy.

Based on these circumstances, where demand is expected to take a hit, the company has done the right thing by cutting down production targets. It is  expected to manufacture approximately 250,000-270,000 units in March v/s average monthly production of 338,000 units during 9MFY23. Capacity utilization is expected to drop below 50%.

The stock price has taken a beating, with the stock price falling 4.5% to hit an intraday low at Rs.3679.85 and is now trading at Rs.3700 levels. The stock, at the beginning of Sept was trading at around Rs.4040 levels and since then has only fallen. Yet, it never surpassed its 52-week low of Rs.3125.80, hit in March’22.

9675.50 (+246.95)

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