Bajaj Auto is trading lower by nearly 2% at Rs 1,810, extending its previous day’s over 3% fall, on news reports that Egypt government has proposed to impose a one year ban on imports of two-wheelers and three-wheelers into the country.
While the decision is not yet final, the Egyptian cabinet has authorized the finance ministry to impose a ban if it is in the national interest.
Bajaj Auto is the biggest exporter with monthly dispatches of 5,000 units each of two-wheelers and three-wheelers to Egypt.
The two-wheeler exports to Egypt account for around 5% of total two-wheeler exports of Bajaj Auto, whereas, the three-wheeler exports form a significant chunk (around 25%) of total three-wheeler exports of the company.
In the event that the proposed import ban is implemented, analyst at Angel Broking expects the company’s total volumes to be impacted by 2-3%.
The net profit impact is expected to be higher given that Egypt market is mainly for three-wheelers and fetches higher margins to the company, said analyst.
Meanwhile, the employees at Chakan plant reject Bajaj Auto's offer of Rs 10,000 a month raise, the media report suggests.
The unit makes the Pulsar and KTM range of motorcycles. It had seen a 50-day showdown between management and workers over pay rise and reinstatement of suspended workers last year.
The stock opened at Rs 1,848 and touched a high of Rs 1,856 on the BSE. A combined 83,649 shares changed hands on the counter so far on the BSE and NSE.
Shares of two-wheeler maker have underperformed the market by falling nearly 7% in past four trading sessions as compared to 0.30% rise in benchmark S&P BSE Sensex.
While the decision is not yet final, the Egyptian cabinet has authorized the finance ministry to impose a ban if it is in the national interest.
Bajaj Auto is the biggest exporter with monthly dispatches of 5,000 units each of two-wheelers and three-wheelers to Egypt.
The two-wheeler exports to Egypt account for around 5% of total two-wheeler exports of Bajaj Auto, whereas, the three-wheeler exports form a significant chunk (around 25%) of total three-wheeler exports of the company.
In the event that the proposed import ban is implemented, analyst at Angel Broking expects the company’s total volumes to be impacted by 2-3%.
The net profit impact is expected to be higher given that Egypt market is mainly for three-wheelers and fetches higher margins to the company, said analyst.
Meanwhile, the employees at Chakan plant reject Bajaj Auto's offer of Rs 10,000 a month raise, the media report suggests.
The unit makes the Pulsar and KTM range of motorcycles. It had seen a 50-day showdown between management and workers over pay rise and reinstatement of suspended workers last year.
The stock opened at Rs 1,848 and touched a high of Rs 1,856 on the BSE. A combined 83,649 shares changed hands on the counter so far on the BSE and NSE.
Shares of two-wheeler maker have underperformed the market by falling nearly 7% in past four trading sessions as compared to 0.30% rise in benchmark S&P BSE Sensex.
