To be sure 30 of 46 analyst recommendations on the counter still have buy calls, with another 13 suggesting a hold on the counter and the Reliance Securities’ downgrade has come in mainly due to a likely slowdown in exports business.
The stock rose 0.46 per cent to Rs 3880 a piece on Tuesday.
On the share buyback, Reliance Securities said the maximum buyback size of Rs 2,500 crore was below the Street expectation. It said Bajaj Auto’s decision to opt for an open market purchase route is a disappointment for investors, as the effective buyback price would be much below the stated upper band of Rs 4,600. It is assuming a buyback at Rs 4,000 per share, which would translate into share count reduction of 2.16 per cent, resulting in EPS accretion by a similar quantum.
“However, our…