Bajaj Auto (BJAUT) Q2FY21 result was below our and consensus estimates at all parameters due to impact of MEIS benefit, higher RM cost and lower other income. EBITDA margin for the quarter stood at 17.7% vs our and consensus estimates of 18.0% and 17.5% respectively on account of lower operating expenses. We expect domestic 2W/3W industry to see a double digit decline in FY21 driven by pandemic outbreak. However stronger recovery in export market for 2W/3W segment would help BJAUT to partially mitigate the current slowdown in domestic market. We cut our volume estimates for FY21/FY22 by 6%/4% factoring the slowdown in 2W/3W domestic market. We introduce our FY23 estimates and...