Bajaj Auto would continue to perform well: KR Choksey Sec

In a chat with ET Now, Deven Choksey, MD, KR Choksey Securities, shares his views on Bajaj Auto.

ET Now: On the charts Bajaj Auto, Hero MotoCorp?

Deven Choksey: In case of Bajaj Auto, the important aspect is that they have created a new category of motorcycles of 200 cc and this segment is likely to perform in a same manner in which, at one point of time when they created the category of above 100 cc motorcycles. So new demand is likely to get generated and that is where they are getting the higher amount of value addition coming into play.

The problem with the other manufacturers or the other two wheeler manufacturers is that they are saddled with lower amount of EBITDA margin also because of the continuous pressure in the lower segment of the motorcycle. So the strategy of Bajaj Auto is probably far more different compared to others and that is where they are cornering the market share, and at the same time growing with the profits and the profitability.

So I am not totally surprised, in fact we have carried this opinion through that Bajaj Auto would remain outperformer given the kind of a strategic move that they have taken. Bajaj Auto would continue to perform and outperform compared to Hero in coming years as well.