Why experts are bullish on Bajaj Auto shares

Expecting short-term rise in Bajaj Auto shares; Avinash Gorakshkar, Head of Research at Profitmart Securities said, “The central government has approved two-wheeler ambulance use in India, which is going to open a big two-wheeler ambulance market in the domestic auto segment. Since, Bajaj Auto has already supplied two-wheeler ambulance to the Andhra Pradesh Government in 2018, they already have the technology and infrastructure to meet the sudden demand arising after this government approval. So, we can expect 3-5 per cent rise in Bajaj Auto shares in immediate short-term but in medium to long-term, working capital cycle and payment term on which the whole new market depends, is going to play a major role.”

Expecting sharp upside move in Bajaj Auto shares in short-term; Sumeet Bagadia, Executive Director at Choice Broking said, “One can by Bajaj Auto at current market price for the immediate short-term target of ₹3850 to ₹3900 maintaining stop loss at ₹3650.”

Pointing towards demand in tier-2 and tier-3 cities in long-term; Ravi Singhal, Vice Chairman at GCL Securities said, “Two-wheeler ambulance will create demand in tier-2 and tier-3 cities where roads are not that much broader and four-wheeler ambulance find it difficult to reach the destination where the patient has to be picked. The demand will be in both fire brigade and healthcare sector as both use ambulance. Since, Bajaj Auto has an edge over its peers; it would definitely have a positive impact on the company stocks. I would recommend stock market investors to buy Bajaj Auto shares for long-term at current market price and keep on accumulating till it is above ₹3600 per stock levels. The stock may go up to ₹4400 in next 12 months.” However, Ravi Singhal strictly advised long-term investors to maintain stop loss at ₹3370.