Meanwhile, the BSE Sensex was up 13.61 points, or 0.17%, to 8,711.78.

On BSE, 5,295 shares were traded in the counter. The stock had an average daily volume of 73,749 shares in the past one quarter.

The stock hit a high of Rs 315.05. It hit a low of Rs 307.15, a 52-week low for the scrip. The stock hit a 52-week high of Rs 945 on 26 May 2008.

The mid-cap stock had underperformed the market over the past one month till 25 November 2008, falling 31.26% as compared to the Sensex's decline of 0.06%. It had also underperformed the market in the past one quarter, declining 41.23% as compared to the Sensex's decline of 39.82%.

The company's current equity is Rs 144.68 crore. Face value per share is Rs 10.

The current price of Rs 313.55 discounts the company's Q2 September 2008 annualized EPS of Rs 51.12, by a PE multiple of 6.13.

According to reports, the company has scaled down its production targets for the next few months. It is targeting a combined monthly production of 1.4-1.5 lakh units across its Pantnagar, Chakan and Waluj units. This means a cut of 40,000-50,000 units a month from peak levels.

The production cut comes at a time when Bajaj is engaged in a massive inventory correction exercise, reducing inventory levels from about two-and-a-half months earlier to a mere seven days.

Furthermore, the company has also decided to gradually shrink its vendor base in an effort to sustain profitability. At present, about 600 tier I, tier II and small suppliers work with Bajaj but in the first phase, this number will be reduced by a 100.

Bajaj Auto's two and three wheelers sales declined 31% in October 2008 over October 2007. The motorcycles sales fell 34% to 163,850 units in October 2008 over October 2007. Total two wheelers sales fell by 34% to 165,477 units in October 2008 over October 2007. Three wheeler sales dropped 6% to 26,363 units in October 2008 over October 2007.

Bajaj Auto's net profit fell 22.5% to Rs 184.91 crore on 9.2% increase in net sales to Rs 2450.73 crore on Q2 September 2008 over Q2 September 2007.

Bajaj Auto, is ranked as the world's fourth largest two- and three- wheeler manufacturer and the Bajaj brand is well-known in over a dozen countries in Europe, Latin America, the US and Asia