InvestorQ : Why did the shares of Bajaj Auto rally over 6% on 21 May, despite weak numbers?
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Why did the shares of Bajaj Auto rally over 6% on 21 May, despite weak numbers?

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Dhwani Mehta answered.
8 months ago
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Bajaj Auto rallied 6.4% on Thursday because the quarterly numbers were better than expected. Bajaj Auto logged flat 0.36% growth in net profits and an 8.1% fall in the revenues for the Mar-20 quarter. However, the impact of the lockdown is expected to be lower on the stock due to its strong exports franchise. Markets were actually pleased by the fact that the EBITDA margins of Bajaj Auto had expanded by 190 bps at 18.4%. Some analysts believe that the fear of contracting Coronavirus in public transport could drive a lot of people to opt for two wheelers.

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