Sputter On Full Throttle

With weak performance denting the stock price, Bajaj Auto’s promoters are propping up the share by buying ₹10.66-billion worth in the last one month

Bajaj Auto is sticking to the adage “there is no gain without pain”. The two-wheeler manufacturers’ aggressive pricing strategy to re-gain lost market share is adversely impacting its financial performance. In the December quarter, the company’s profits took a strong beating with EBITDA margins plunging 400 bps to 15.6% (yoy).

At the cost of profit, Bajaj Auto is gaining market share. In the motorcycle segment specifically, its market share had declined from 20% in FY14 to 15.7% in FY18. In a bid to arrest the decline, the management scripted a volume-growth strategy by implementing a sharp cut in pri


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