Bajaj has reclaimed its title of the most valuable bike manufacturer after leaving Eicher Motors and Hero MotoCorp behind.
Domestic major Bajaj Auto overtook Eicher Motors and Hero MotoCorp in terms of market capitalisation last week. The automaker has regained its title of the most valuable bike manufacturer of the country which was lost to Eicher Motors a couple of months back. Currently, as per BSE, Bajaj’s market capital stands at Rs. 90,686 crores, while Eicher Motors and Hero MotoCorp are trailing behind with market capitalisation of Rs. 85,126 crores and Rs. 74,387 crores respectively.
Eicher Motors, the parent company of Royal Enfield, took the lead from Bajaj Auto on 31st of July 2017 to become India’s most valuable two-wheeler company. In the second quarter of this year, Royal Enfield witnessed YoY sales growth of 24.7% which helped negate the effect of decreasing foothold of its parent company in the commercial vehicle segment.
During the same time, Bajaj Auto reported weak earnings due to a number of factors which included higher sales promotion costs, a rise in input costs and the expiry of excise benefits at its Pantnagar facility. The following month saw Hero MotoCorp grab the Pune based company’s market position, thereby pushing it to the third spot.
The month of September saw Bajaj Auto’s market capitalisation witness a 7% hike to wrestle through the Rs. 90,000 crore mark, dethroning both Eicher Motors and Hero MotoCorp in the process. Sales of Bajaj Auto saw an all-time high of 4.28 lakh units for the month, which includes 1.22 lakh units for export. In August 2017, the brainchild behind #HaathiMatPaalo also announced its partnership with Triumph Motorcycles to take on Royal Enfield.
Most Valuable Bike Manufacturer
– Bajaj Auto regains its top position with market capitalisation of Rs. 90,686 crores
– Pushes Eicher Motors and Hero MotoCorp down the list
– Company witnessed an all-time high of 4.28 lakh units in September 2017 sales
Source – MoneyControl.com