Bajaj Auto shares gained more than 1 per cent on Monday, with the stock outperforming the broader auto sub-index on the BSE in early trade.

India's largest exporter of motorcycles and three-wheelers said on Friday that it had bagged an order for 1.25 lakh units of Discover-125M motorcycles from Sri Lankan government.

The "repeat order" is expected to be executed in next 3-4 months, the company added.

Last week, Bajaj Auto told analysts that it remained confident about its exports and expects exports to double in 4-5 years, Macquarie reported.

Bajaj Auto's sales in domestic market have been under pressure amid rising competition, but at the analyst meet, the company restated that it has no plans to launch scooters.

Scooters are the fastest growing segment in the domestic market, but Bajaj Auto has no presence in this segment, a factor that has weighed on domestic sales.

Macquarie retained its "underperform" call on Bajaj Auto. Macquarie's target of Rs 1,850 is 25 per cent lower than Bajaj Auto's closing price of Rs 2,466 on Friday. As of 09.25 a.m., Bajaj Auto shares traded 0.2 per cent higher at Rs 2,470.50.

Source:profit.ndtv.com