Bajaj Auto Ltd witnessed a significant surge in its shares, reaching a one-year high with a remarkable 5.96% jump to Rs 7,059.75. The surge followed an announcement by the company about its consideration of a proposal for a buyback of equity shares in an upcoming board meeting on January 8, 2024. Bajaj Auto revealed in a BSE filing that the board would discuss the buyback along with other necessary matters in accordance with applicable regulations.

An analyst suggested that the size of the buyback would likely exceed the previous one, which was valued at Rs 2,500 crore. The last buyback was executed through an open market mechanism on the stock exchange at a buyback price of Rs 4,600 per share. Considering the current share price at Rs 6,950, the expected buyback price could range from Rs 7,800 to Rs 8,000.

On the BSE, the trading volume was higher than the two-week average, with around 25,000 shares changing hands. The total turnover on the counter amounted to Rs 17.22 crore, contributing to a market capitalization of Rs 1,97,788.32 crore. The buy orders significantly outnumbered sell orders, with 54,318 buy orders against 8,833 sell orders.

From a technical standpoint, the stock traded above various moving averages (5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day SMAs) and displayed a 14-day RSI of 75.22, indicating an overbought condition (RSI above 70).

As of September 2023, the company's stock boasted a price-to-earnings (P/E) ratio of 29.34 and a price-to-book (P/B) value of 7.43. Promoters held a 54.98% stake in the company. In terms of sales performance, Bajaj Auto reported sales of 3,26,806 units in December 2023, compared to 2,81,514 units in the same period of the previous year.

ALSO READ: Adani Stocks Rise to 14% Ahead of Today's Hindenburg Supreme Court Decision