December 17, 2012 10:44 AM IST

Nomura Downgrades Bajaj Auto to 'Neutral' from 'Buy'

Nomura downgraded Bajaj Auto (BAJA.NS) to 'neutral' from 'buy', saying the Indian auto maker's valuations of 15.5 times fiscal 2014 earnings have priced in expectations of improving market share.

Newly built motorbikes are seen at the Bajaj Auto Ltd. plant in Pune, about 130 km from Mumbai August 9, 2007.

The downgrade comes even as Nomura says it still believes Bajaj Auto can continue to beat market leader Hero MotoCorp (HROM.NS) over the next few months.

Bajaj Auto has gained 30.8 percent so far this year versus a 25 percent gain in the BSE Sensex and a fall of 2.2 percent in Hero MotoCorp.