bikes, auto expo
Bajaj Auto, Hero MotoCorp, Tata Motors, Shree Cement and Grasim Industries were among 10 stocks from the S&P BSE 200 index that hit their respective 52-week lows on the BSE.
Container Corporation, Indian Bank, Motilal Oswal Financial Services, Edelweiss Financial Services and Oracle Financial Services Software, too, hit 52-week lows today.
Shares of Bajaj Auto hit a 52-week low of Rs 2,465, down 5% on the BSE, after the company’s ebitda (earnings before interest, tax, depreciation and amortization) margin declined by 280 basis points at 18% in September quarter (Q2FY19), owing to higher input costs, adverse product mix and increase in incentives. The company had ebitda margin at 20.8% in the same quarter last fiscal.
Bajaj Auto reported a single digit 4% year-on-year (Y-o-Y) growth in its net profit at Rs 11.52 billion in Q2FY19 against Rs 11.12 billion in the corresponding quarter of last fiscal. Net sales grew 22% at Rs 80.71 billion on Y-o-Y basis.
Hero MotoCorp too hit 52-week low of Rs 2,661, down 2% on the BSE in intra-day trade. The stock of two-wheeler firm slipped 8% in past five trading days, after the company’s ebitda margin declined by 220 bps at 15.2% in Q2FY19, against 17.4% in Q2FY18.
Management acknowledged that demand for first six days of festive has been soft, however they are confident of demand reviving in the balance festive period. They attributed the weakness in sales primarily to the confusion in the market pertaining to the personal accident premium increase (earlier 5 years, now 1 year), which is getting sorted gradually.
“Hero’s margin resilience despite higher raw material cost in the quarter was impressive, though we expect other expenses to inch up going forward owing to seasonality,” analysts at Elara Capital said in result update.
COMPANY LATEST 52 WK LOW PREV LOW PREV DATE BAJAJ AUTO 2484.00 2465.00 2479.50 19-Oct-18 CONTAINER CORPN. 564.60 556.45 560.90 23-Oct-18 EDELWEISS.FIN. 136.45 136.45 140.10 22-Oct-18 GRASIM INDS 802.50 797.85 820.00 23-Oct-18 HERO MOTOCORP 2675.50 2661.00 2678.85 19-Oct-18 INDIAN BANK 212.40 211.00 211.50 23-Oct-18 MOTIL.OSWAL.FIN. 590.75 584.60 586.55 23-Oct-18 ORACLE FIN.SERV. 3435.25 3329.55 3475.00 25-Oct-17 SHREE CEMENT 13651.15 13524.00 13750.00 23-Oct-18 TATA MOTORS 169.95 169.10 169.80 23-Oct-18