Bajaj Auto’s Market Share Increased But Aren’t Resulting In Profit Growth
Today everyone is aware of the fact that Bajaj Auto Ltd performed really well in the financial year 19 with a growth of 28.7% in the domestic two-wheeler market.
This growth is a result of Bajaj’s Aggressive Pricing Strategy in the entry-level commuter category. Due to Aggressive Pricing Strategies, the profits of the company decreased and the company may lose the confidence level of investors.
The stock of Bajaj is up by 8% in the past 1 year while the stock of Hero Moto Corp Ltd. TVS Motors Co. Ltd. dropped by 27% and 17 % which indicates investors are cheering up the Bajaj’s Aggressive Pricing Strategy.
Although EBITDA increased by 10 pints only but better-expected price realization has maintained the confidence of investors.
The company is expecting to continue outpacing industry growth rate through new product launch, and branding and marketing initiatives.
The company reported having an increase in accounts receivables but its understandable as the whole industry was facing a tough time.