Headwinds on demand, cost fronts to keep Bajaj Auto under pressure

Higher exports may offset some of the volume, cost pressure

Led by Bajaj Auto, domestic two-wheeler sales in February continued to disappoint posting a double digit decline over the year ago quarter. Bajaj Auto reported a 35 per cent decline in domestic two-wheeler sales followed by Hero MotoCorp at 32 per cent and Eicher Motors at nearly 20 per cent. Domestic two-wheeler despatches of TVS Motor were relatively better, falling 11 per cent over the year ago period. The stock price performance reflected the wholesales numbers with Bajaj Auto stock shedding 4.6 per cent, the most among two wheeler makers.  

Varun Baxi of Prabhudas Lilladher Research says that Bajaj Autos