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Shares of Bajaj Auto today plunged over 9 per cent, wiping out Rs 7,862 crore from its market valuation, after the company’s first quarter earnings came below market expectations.
The stock tanked 8.73 per cent to settle at Rs 2,841.10 on the BSE. During the day, it tumbled 9.40 per cent to Rs 2,820. On the NSE, the stock plummeted 9.41 per cent to close at Rs 2,821.60.
The stock was the worst hit among the blue chips on both the key indices. Led by the sharp decline in the stock, the company’s market valuation eroded by Rs 7,861.94 crore to Rs 82,212.06 crore.
In terms of equity volume, 3.27 lakh shares of the company were traded on the BSE and over 49 lakh shares changed hands on the NSE.
“Bajaj Auto Q1 numbers were below our estimate,” said Abhishek Jain, Analyst, HDFC Securities.
According to a BSE filing, Bajaj Auto Ltd has reported 24.5 per cent increase in consolidated net profit at Rs 1,041.78 crore for the first quarter ended June 30, 2018 on robust sales. It had posted a consolidated net profit of Rs 836.74 crore in the same quarter of the last fiscal.
However, on a sequential basis, the net profit declined over 11 per cent from Rs 1,175.47 crore in the quarter ended March. Sales during the quarter under review stood at Rs 7,267.19 crore. It stood at Rs 5,740.3 crore in the year-ago period. The two figures are not comparable as sales during the first quarter of this fiscal is net of tax after GST implementation in July last year.
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