Bajaj Auto Ltd. share price target

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...

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 (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...

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.