Bajaj Auto Share Price: Stock market experts have turned bullish on the auto stock after the company’s board of directors announced a share buyback of Bajaj Auto, despite investors’ weak reaction to the stock. Bajaj Auto share price today opened lower and went to intraday low 3783.05 level on NSE, almost 2 percent lower than Monday’s closing level 3861 per share level. However, market analysts are of the view that the stock is sideways with a positive bias and it may turn bullish after clearing the immediate hurdle. 4,000
to speak on bajaj auto share price Outlook, LKP Securities Senior Research Analyst Ashwin Patil said, “The buyback size is Rs 2500 crore and is valued at Rs 4600. However it is an open market buyback and not through a tender offer. This means the stock may not reach Those levels until the close of the buyback offer. So for retail investors, there may not be any significant upside due to this buyback. However, we believe the stock certainly holds a good value through its intrinsic performance. and reach the level 4400 which is our target price. We keep buy on stock.”
Advising positional investors to add Bajaj Auto shares to their stock portfolio, Rohit Singre, AVP – Technical Research at Bonanza Portfolio said, “Bajaj Auto stock is trading with a positive bias. Any downside in the stock should be seen as a buying opportunity. The scrip is placed on immediate support 3750 and strong support 3650. Immediately interrupted 4000 Epic Levels. Once, it breaks this barrier, it can go up 4,300 per share level in the short term.” Rohit Singre of Bonanza Portfolio said that those who have a short term view should maintain the stop loss. 3750 whereas those having a long term outlook in Bajaj Auto shares are advised to maintain a stop loss 3650 each level.
The board of directors of the auto company in its meeting on Monday approved the proposal for buyback of fully paid-up equity shares of the company, which have face value. 10 each from the existing shareholders of the company (excluding promoters, promoter group and persons controlling the company) from the open market through the stock exchange mechanism. Bajaj Auto share buyback will be done through the stock exchange mechanism at a higher price than the open market 4,600 per equity share in aggregate 2500 crores.
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.