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Shares of Bajaj Auto were trading marginally in red ahead of financial results for the quarter ended December 2018 later in the day.
The scrip was down 0.55 per cent at Rs 2552.85 at around 10 am (IST), while the benchmark BSE Sensex was up 106 points, or 0.30 per cent, at 35,699 at around the same time.
Brokerage firm IDBI Capital Markets projected 12.10 per cent year-on-year rise in standalone net profit for Bajaj Auto on 25.80 per cent volume growth.
Revenue of the company is expected to rise 17.90 per cent on YoY basis.
Overall volumes have increased 25.8 per cent YoY (-5.9 per cent QoQ) to 1,2,60,000 units due to 27.4 per cent YoY increase in domestic volume and 23.6 per cent YoY increase in export volume.
Market participant should focus on update on two-wheeler demand outlook from urban and rural areas, price hike in domestic markets across segments, export demand outlook and pricing in key currency market.
Comments on three-wheeler demand, momentum in domestic market and updates on electric vehicle strategy should also be watched.
Motilal Oswal Financial Services sees 11.80 per cent increase in net profit in Q3 for Bajaj Auto on 18.50 per cent rise in net sales.
The brokerage firm expects realisation to decline by 5.8 per cent YoY led by deterioration in the product mix.
“We expect EBITDA margin to contract by 330 basis points YoY and 80 bps QoQ to 16 per cent,” Motilal Oswal Financial Services said.
