Mumbai, NFAPost: Bajaj Auto has struck over Rs 1 trillion in market capitalisation and joined the elite club of companies. After Maruti Suzuki India, Mahindra & Mahindra and Tata Motors, Bajaj is the fourth automobile company to have achieved the milestone.
The Bajaj Auto stock touched a record high of Rs 3,459.90 apiece on the BSE, with a market cap of Rs 1.01 trillion.
According to Arvian Research analyst, Bajaj Auto’s Rs 1 trillion capitalisation achievement is primarily supported by the surge in consumer demand after the country decided to partially lift the lockdown.
“Bajaj Auto expanded market share by focusing on rural and urban demand with a steady marketing strategy. Gradual restoration of supply chain and utilisation levels improving at its plants, Bajaj Auto is expecting to touch volumes to the previous year levels. Also, the companies fast sales recovery in two-wheelers really helped in achieving this milestone,” said Arvian Research analyst.
Bajaj Auto has also signed a pact with the Maharashtra government to set up a Rs 650 crore manufacturing unit in Chakan. As per news source, the new plant will be for premium motorcycles and this shows optimism about the continued growth potential of this segment in India and overseas.
The plant, with a capacity to build up to a million motorcycles a year, would make premium motorcycles under the KTM, Husqvarna and Triumph brands along with electric scooters. The plant is scheduled to open by the second half of FY2022-23.