For Bajaj Auto, share buyback worth up to Rs 2,500 crore spurs optimism

Fall in raw material prices, low base, and normal monsoon are other positives

Two-wheelers major Bajaj Auto announced a share buyback programme worth up to Rs 2,500 crore, offering Rs 4,600 each for 5.435 million shares, aggregating to 1.88 per cent of the company’s equity. The buyback price was at a premium to Friday’s closing of Rs 3,812 and helped push the share price to Rs 3,862 on Monday.

The stock has risen 19 per cent since January, despite unimpressive results through the last fiscal. There’s enough in the kitty for the buyback, with over Rs 17,000 crore of cash on the company’s balance sheet, and given the low sales volumes of the last