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Bajaj Auto falls
February 26, 2003 14:55 IST
Baja Auto proved the biggest loser among Sensex stocks in afternoon trades on Wednesday.
The scrip of the Pune-based two-wheeler major was trading lower by 1.46% to Rs 508 by 12:40 IST. A total of 28,519 Bajaj Auto shares changed hands on BSE thus far. In the 13 sessions from 6 February 2003, the stock lost 8.3% from Rs 554. In the four prior months (between 4 October 2002 and 6 February 2003), the scrip has witnessed a sustained uptrend, rising 54% from Rs 360.70.
Dealers say the fall in the scrip is due to selling by institutions. Institutions are booking profit after a sustained rise in the scrip over the last few months. Now, with general cautiousness as a result of the possible war between the US and Iraq, players are offloading positions. One dealer said the selling is also on shifting of portfolio.
Concerns over future growth has seen selling on the counter after there were reports that the Maharashtra government plans a 5-day week for manufacturing companies due to the shortage of power in the state. The state government, in a bid to save power, plans to increase the duration of power cuts. Bajaj Auto's manufacturing unit is situated in Pune and this is expected to have a disastrous consequence on the company's earnings. In the first phase, the power cut is expected to be increased from three hours to four hours, and, if the power shortage persists, then the government plans to ask the industry to introduce a five-day working week .
For Q3 ended 31 December 2002, BAL registered a 24% rise in net profit to Rs 134.02 crore (Rs 1.34 billion), compared to Rs 108.17 crore (Rs 1.08 billion) in the corresponding period of the previous year. Sales increased by 13.15% to Rs 1,273.46 crore (Rs 12.73 billion), from Rs 1,125.38 crore (Rs 11.25 billion) in DQ 2001.
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