Domestic auto industry volumes have been on a steady mend in the months post lifting of lockdown restrictions. Manufacturing and distribution activities have been getting ramped up gradually since June 2020, in step with the rest of the economy. However, the impact of the pandemic on the supply chain continues to inhibit a complete return to production normalcy. Nevertheless, most automotive industry segments have reported successive improvement in offtake throughout June-November 2020 (Exhibit 1) on the back of (i) initial bounce provided by pent-up aspect,...

Bajaj Auto remains the 2nd largest player (~18% market share) in the domestic motorcycle segment and continues to be the largest exporter of two-wheelers in India.

Bajaj Auto Limited ( BAL) revenue from operations declined by 7.2% YoY but increased by 132% QoQ to Rs 71559 mn as CV volumes failed to pick up, while 2-wheeler sales saw an uptick by the quarter end. Domestic Volumes declined by 9%YoY at 573,586 units whereas Export volume declined by 20% YoY at 479,751. in Q2FY21. EBIDTA for Q2FY21 remained flat on YoY basis, however grew by 210% Q0Q at Rs 12,662 mn in Q2FY21 EBIDTA margin expanded by 111 bps YoY & 443 bps Q0Q to 17.7% helped by lower costs of production and lower other expenses....

Bajaj Auto is the world's sixth-largest manufacturer of motorcycles and the second-largest in India. It is also the world's largest three-wheeler manufacturer. The company is based in Pune, Mumbai with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttarakhand. Bajaj Auto...

For Q2FY21, Bajaj Auto reported total revenue from operations of INR 7.041 Cr, degrowth of 6.1% YoY (up 138.8% QoQ) Domestic Volumes declined by 9% YoY at 573,586 units whereas Export volume declined by 20% YoY at 479,751 EBITDA margin expanded 93 bps YoY to 18.0% (+539 bps QoQ). Net Profit de-grew by 18.9% YoY to INR 1,138 Cr. (+115.7% QoQ) attributed to reduction in treasury income coupled with one-time gain noted in last year's Net Profit. Net profit margin contracted 255 bps YoY/173 bps QoQ to 16.2% In Q2FY21, the company introduced Pulsar 125 Drum Split Seat and expanded the footprint of Pulsar 125 Disc Split Seat. Further...

Ambuja Cements: During 3QCY20, Ambuja Cements (ACEM) reported strong results. Standalone net sales/EBITDA/APAT rose 9/55/88% YoY to Rs 28.53/6.80/4.41bn respectively. Volumes jumped 8% YoY on strong retail demand. Opex fell 8% YoY on robust (and structural) cost controls and low fuel prices, driving a 44% jump in unitary EBITDA to Rs 1,200/MT. In a positive surprise, ACEM announced Rs 17/share dividends, thus paying off 60% of its large cash pile up on books. We maintain BUY with a higher target price (SOTP-based) of Rs 283/share, owing to increased volume growth and robust unitary EBITDA visibility, and a leaner balance sheet, post the large dividend payout. Asian Paints: Delivering growth along with improving profitability and untouched free cash generation during a pandemic, especially when top cities are yet to fire (70-80% of base quarter sales) is a testimony to APNTs distribution and product portfolio heft. That said, the recovery is more than priced in at 54x Sept-22 P/E. We revise our FY22/23 EPS estimates marginally (2/4% resp) and, consequently, our DCF-based TP to Rs. 1,850/sh (earlier TP: Rs. 1,800/sh) implying 50x Sep-22 P/E. Bajaj Auto: Bajajs 2QFY21 results were above estimates as EBITDA margin came in at 17.7% (+110bp YoY). The demand is reviving across overseas geographies (80-90% of pre-COVID levels) and domestic markets, with festive sales equivalent to that of last year. The high margin domestic 3W segment will witness a gradual pick-up in sales as cities gradually normalise. We raise our FY21/22 estimates by 8/2% to factor in a healthy 2Q performance and set a...

We have revised our estimates upwards for FY22/23 given better than expected recovery in the 2W market and positive management commentary. We retain BUY rating with revised TP of Rs. 3,500 (Rs. 3,300 earlier) as we value the stock at 16x its FY23E EPS.

Bajaj Auto's (BJAUT) Q2FY21 operating performance was in line with our estimates, but adj. PAT fell short (19% YoY to Rs 11.4bn) owing to below-expected other income.

We maintain Buy rating on Bajaj Auto (Bajaj) with unchanged PT of Rs 3,500. Demand is improving in both domestic as well as export markets. Q2FY21 operating results were ahead of estimates as margins improved on a y-o-y basis...

Seminal year for industry provides interesting insights However, amid all the gloom, the engineering and production prowess of the industry (along with its value chain) shone brightly as it successfully completed the world's fastest switchover to Euro 6 equivalent emission norms i.e. BS-VI as per schedule. Much of the post festive period was focused on the transition, with the entire ecosystem estimated to have spent ~| 70,000 crore towards the technological leap. Covid-19 crisis struck India in the run up to April 2020, just as the changeover...

We upgrade our rating from HOLD to BUY with a Target Price of Rs 3,300 (earlier 2,850) valuing it at 16x (earlier 17x) FY23E PE ratio (including Rs 120/share for its stake in KTM) which gives an upside of ~8% from current levels.

Bajaj Auto is the world's sixth-largest manufacturer of motorcycles and the second-largest in India. It is also the world's largest three-wheeler manufacturer. The company is based in Pune, Mumbai with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttarakhand. Bajaj Auto...

Numbers bottomed out in Q1, heading towards recovery Resilience displayed in pandemic hit quarter Bajaj Auto posted a 61% yoy decline in the topline in COVID hit Q1, while they declined by 55% qoq. The volumes fell by 64.5% yoy and 55% qoq as there was a stringent lockdown observed in the earlier part of the quarter. Realizations grew by 9.8% yoy, which were very well supported by export realizations and a higher proportion of BS 6 vehicles. EBITDA declined by 66% yoy to 4.1 bn, while margins still showed a better performance at 13.3%, much better than street's expectations, though it was lower by 210 bps yoy. The overall underperformane stemming from...