If You Invested In Bajaj Auto Shares Instead Of Buying That Pulsar Last Month, Here's How Much You Would Have Now
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Bajaj Auto shares crashed over 5% on Monday after news that the company was planning a 25% cut in production made headlines.

What Happened: Shares of the company have dropped over 7% in the last month. The company is said to have been cutting production due to demand being muted in its overseas market. The company’s total export sales fell 47% year-over-year to 1.12 lakh units this January.

However, most domestic brokerages remain positive on the stock. KRChoksey and Axis Direct maintained the ‘buy’ rating for the stock with price targets of ₹4,564 and ₹4,170, respectively.

Now, for the money talk, how much money would you have lost if you invested in Bajaj Auto instead of buying that Pulsar a month ago?

See Also: ₹1,000 Invested In PolicyBazaar Today Will Be Worth This Much If Shares Return To IPO Price

The average ex-showroom price for Pulsar bikes in Delhi ranges between ₹70,000 to ₹1.70 lakhs depending on the model you buy.

For the sake of this article, let’s say you bought the Pulsar 150 model last month. That would have cost you around ₹1.33 lakh on road. Now, if you invested this money in the Bajaj Auto stock last month i.e. on Jan. 27 when the stock closed at ₹3,937.70, it would have fetched you around 34 shares of the automaker. Since then the stock has fallen around 7.5%, now with this fall your ₹1.33 lakh investment would have been worth around ₹1.23 lakhs today.

However, if the stock sees a turnaround as the brokers expect and reaches the target price of ₹4,564, your initial investment would jump around 16% to ₹1.53 lakhs. If the stock rebounds to its 52-week high of ₹4,130.15 your investment would jump to around ₹1.40 lakh, which translates to a 5% return on investment.

Then, maybe you could instead buy the Pulsar 160 model.

Price Action: Bajaj Auto shares tanked 5.45% to close at ₹3,640.75 on Monday.

Read Next: Tata Motors Analyst’s ‘Neutral’ Stance Change On Stock Sees Shares Slide 3%

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automobile industryBajaj AutoKRChokseyTwo wheeler