India's Bajaj Auto sinks nearly 8% after concerns of slowing sales, weak outlook
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Shares of Indian motorcycle maker Bajaj Auto dropped nearly 8% on Thursday as analysts expressed concerns over the 'Pulsar' manufacturer's slowing domestic sales and a weak sales outlook for the ongoing festive season.
Bajaj Auto reported quarterly profit growth and margins that largely met expectations, according to analysts, who, however, noted that the stock's current valuation appeared to have priced in all positives.
In an analyst call on Wednesday, Executive Director Rakesh Sharma said he expects motorcycle sales during the early October-November festive season to grow just 3%-5%. That is lower than the industry's expectation of at least 8%.
Indians generally make big ticket purchases like motorcycles during the festive season.
Bajaj Auto is the first two-wheeler maker to report its second-quarter results.
