Bajaj Auto Ltd. share price target

somewhat offset by higher tax rate at 32.2% with lower benefits from PN plant led to net profits slightly above street expectations at 10.8 bn, which was 23% higher yoy. Newly launched motorcycles, 3W permits to drive volumes in the domestic markets...

Looking ahead, we expect BAL to benefit from the expected industry growth over FY19-FY20 despite competitive intensity. We believe exports to grow ahead of domestic sales owing to improving Middle East markets and expansion/penetration into newer markets, which coupled with INR depreciation would aid in margin expansion for BAL. We expect BAL's volume to clock ~12% CAGR over FY18-FY20E. We further expect BAL to record an EPS of Rs188.4 on revenue of Rs335bn in FY20E. In view of ~22% RoE, healthy margin profile and positive export outlook, we recommend BUY on BAL with a Target Price of Rs3,165, valuing the stock at 16x...

During 4QFY18, Bajaj Auto (BJAUT) reported EBITDA margin of 19.4% (+90bps YoY, +10bps QoQ) due to positive operating leverage accruing from 33% volume growth (despite a 160bps YoY drop in gross margin). With the upswing witnessed in oil price and ramp-up in newly added markets, export volume witnessed second successive quarter of 25%+ YoY growth. However, domestic 2W segment growth of 20.3% YoY in 4QFY18 was lower than the industry's 24.8%. The company is confident of regaining market share in FY19 with CT100 and the new Pulsar (with twin discs) acting as the primary growth drivers. BJAUT has taken a price hike of 1-1.5% during Mar'18 and May'18, to offset the impact of commodity...

Premiumization in core businesses to drive growth... Bajaj Auto Ltd (BAL) is the second largest manufacturer of two - wheelers, and also world's largest three-wheeler manufacturer. Apart from manufacturing under the Bajaj brand name, it also distributes motorcycles in India for other manufacturers, such as the Kawasaki and KTM. Exports contribute 35% of consolidated revenues....

Q3 EBITDA was in line with estimates (4% above consensus). Topline beat (on superior mix) was offset by weaker-than-expected EBITDA margin (commodity cost impact, lumpy CSR). PAT was below estimate due to Rs 800 mn M2M loss on treasury income (notional; will reverse).

The company witnessed drop in margins during the quarter. Profits were short of estimates. Profit was estimated at Rs 1,058.82 crore for the quarter. Blended realization during the quarter grew 6.9% to Rs 63,630. The company witnessed 130bps drop in its operating margins during the quarter ended Dec 17 to 19.3% leading to 18% rise in operating profit to Rs1230.61 crore. The OPM during the quarter fell due to higher raw material and employee cost. The raw material costs including traded goods cost, as % to sales net stock adjusted, rose 230 bps to 62.14%....

New launches The company launched New Discover 110 and Discover 125 and the all new Avengers- Cruise 220 and Street 220 in January 2018. The company is in the process of launching one more Avenger in the next 15 days. As per the management,...

ICICI Securities Ltd | Retail Equity Research Bajaj Auto reported its Q3FY18 results, which were below our estimates on the operational front. Net Revenues stood at | 6369 crore (up 25.7% YoY/ down 3.2%QoQ) against our estimates of | 6097 crore. The beat is attributable to higher than estimated realisation. (~| 62371 against estimates of | 59799; domestic ASPs were higher as the company took price hike in November) Total volumes for Q3FY18 stood at 1001469 units (up 18% YoY/...

Bajaj Auto (BJAUT) reported 3QFY17 results earnings were lower than our and consensus expectations. Net Revenue were above our and consensus estimates due to better product mix, higher realization in export market and recent prices hikes. EBITDA margin for the quarter stood at 19.3% vs our and consensus estimates of 19.9% and 20% due to higher other expenses (increase in CSR activities and one time software expenses of Rs280 mn and Rs200 mn respectively) whereas Adj. Pat for the quarter stood at Rs9.5 bn lower than our and consensus estimates of Rs10.3bn anRs10.7 bn due to lower other income and higher tax rate....

Below Par Performance Retain SELL;During Q3FY19, Bajaj Auto Ltd (BAL) sales grew 25.7% YoY to Rs63.7bn, driven by 17.6% volume growth and a 0.9% increase in average realizations. EBITDA margins declined by 127bps yoy to 19.3% on account of higher CSR and one time registration charges the Company incurred during the quarter.