Two bike giants sprint on stock market racecourse
Image credit X.com @NSEIndia
Blue chip stocks give staggering returns in stock market
By S Jha
New Delhi, September 23: Sensex and Nifty are soaring with record pumping of fund by the foreign portfolio investors. Equity markets are taking no cognizance of potential outbreak of a regional conflict in the Middle East.
The US bourses are trading at record highs. Nifty is a kiss away from the 26,000 level. In one month, Nifty has added 928 points.
Cash market buying frenzy has brought spotlight back on PSU stocks also. The PSU stocks had been out of favour for past two months.
Brokerages have begun giving target of 27000. ICICI Direct in a mail to clients has sounded funds aiming for Nifty to hit 27000 level in near future.
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With bulls ruling the street, the momentum stocks have gained further pace. Market participants have long been claiming that this year belongs to the auto sector.
The lead in the auto sector was taken by Bajaj Auto early this year. Bajaj Auto has smashed the popular views on the street that only companies with less than ₹1,000 crore market cap becomes multi-bagger.
The Bajaj Auto market capitalisation stands at a staggering ₹3.5 lakh crore. In past 12 months, the share of Bajaj Auto has given a return of a whopping 147 per cent.
On March 17, 2024, the shares of Bajaj Auto were trading at ₹3800. It closed at ₹12378 on Monday. In about 18 months, the Bajaj Auto share has trebled.
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The Bajaj Auto share is commanding a PE valuation of 43. The management of the company is sanguine about CNG-powered and premium bikes.
Ten months ago, the share of Hero Moto Corp was trading at ₹3100. The share of Hero Moto Corp on Monday closed at ₹6190.
In one year, the share of Hero Moto Corp has given return of more than 100 per cent. The two-wheeler giant has stakes in Ather which is an electric bike company.
Both Bajaj Auto and Hero Moto Corp have turned multibaggers. The market cap of Hero Moto Corp is ₹1.24 lakh crores.
The furious run in the stock prices of Bajaj Auto and Hero Moto Corp has given them the tag of outperformers. Their peer, Eicher Motors, is yet to sprint on the street.
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Eicher Motors share has given a return of 45 per cent in the last one year. The maker of Enfield Bullet in India is now facing stiff competition from Bajaj Auto and Hero Moto Corop in the premium bike business.
Disclaimer: This article makes no recommendation for buy or sell of shares of any company.
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