Bajaj Auto is a measured buy: Dimensions Consulting

In a chat with ET Now, Ajay Srivastava of Dimensions Consulting Pvt Ltd shares his views on Bajaj Auto.

ET Now: In terms of Bajaj Auto, what is your approach? One is getting a sense that the storm has come and gone for Bajaj Auto because the management once again has indicated that they are confident of improving things from here?

Ajay Srivastava: It is a buy in a measured sense for two reasons. One, may be the storm has not come and gone fully, but still is hovering around. But the second is, they decided to let their full-fledged 100 cc bikes to compete with the lower end of the market, which is a strong positive because they vacated the space. They had a big vacuum there. Hero took it on and made enormous profit till date. Therefore, to come back in the market may not be as profitable, but definitely add volumes to it and will create a good platform for recovering overhead. So margin-wise that could be a positive. So I would certainly believe that it is not a sell at this point of time, it is a measured buy.