Buy Bajaj Auto With Target Of Rs 1690

Buy Bajaj Auto With Target Of Rs 1690Stock market analyst D Prasad said that the investors can buy Bajaj Auto Ltd stock with a 2-3 day target of Rs 1690.

According to Mr. Prasad, it is better to buy stock above Rs 1650 with a stop loss of Rs 1628.

Today, the stock of the company opened at Rs 1636.50 on the Bombay Stock Exchange (BSE).

The share price has seen a 52-week high of Rs 1647 and a low of Rs 742.50 on BSE.

Current EPS & P/E ratio stood at 81.86 and 20.17 respectively.

Bajaj Auto announced that it is eyeing massive distribution network growth in order to meet up healthy growth objectives, appending 130 novel dealerships and promoting 1,100 service centres by 2011's festival season.

The company said that the new dealers, mostly in small towns, would take the overall number to over 600 dealerships across the country.

Mr. S Sridhar, President - Motorcycle Business, Bajaj Auto stated, "On the other hand 'Discover' which is a mass commuter has huge potential in smaller towns. While Discover's growth in terms of volumes and market share has been outstanding, the next big boost will come from increasing the share in these towns and in rural India which accounts for more than 50 per cent sales of this category."

"These new dealerships will help the company to increase the share in this model in smaller towns which are today inadequately catered to by only the secondary network," Mr. Sridhar added.

The company's net profit for the three month period ended September 30 grew by 69.3% to Rs 682.08 crore on 49.7% surge in net sales to Rs 4180.91 crore over the same period of last year.