India’s second largest two wheeler producer Bajaj Auto Ltd. has declared its first quarter FY12 net profit of Rs/711 cr, a growth of 20.5% as compared to Rs.590 crore for the same period a year ago. Also, revenues increased 22% to Rs.4,777 cr in the quarter ended March 2011 versus Rs.3,890 crore in same period the previous year. However, operating profit margin too was quite a bit disappointing, which came at 19.06% against 20% on YoY (year-on-year) basis.
Taking about the BAJAJ-AUTO stock we see that there is much more upside left in the short term and we will recommend investors to take the long positions near 1360 level for long term target of 1680 and 1820, also placing the stop for this long positions near 1250 level. We are taking this positions based on technical analysis.