Bajaj Auto Ltd. share price target

We have trimmed our FY18E by 3%, factoring in lower 1HFY18 volumes. Maintain BUY with a SOTP-based TP of Rs 3,598 (20x 19E Core EPS + cash + 30% discount for KTM stake). Bajaj Autos (BJAUT) 2Q EBITDA at Rs 13bn (flat YoY), and margin at 19.7% came in-line with estimates. Net revenue came in at Rs 65.8bn (+8% YoY), owing to an increase in volumes (+4% YoY).

EBITDA margin recovers from multi-quarter low: EBITDA came in flat YoY at INR13b (in-line), implying EBITDA margin of 19.7% (-170bp YoY, +250bp QoQ; est. of 19.1%). Lower-than-estimated RM cost and lower staff cost boosted the operating performance. The impact of lower other income was diluted by a lower tax rate. Adj. PAT declined 1% YoY to INR11.1b (est. of INR11.2b). Management commentary: (a) Company expects domestic motorcycle industry growth at 8-8.5% in FY18, with BJAUT's domestic motorcycles growth at ~3% (+20% in 2HFY18). (b) Recent launches of CT100 ES, Platina and Pulsar...

Bajaj Auto (BAL) & Triumph Motorcycles UK announced their global partnership to deliver mid capacity motorcycles for the Indian & global markets. This non-equity partnership will help BAL gain access to the iconic Triumph brand & technology. BAL will make a new range of locally developed Triumph bikes at its Chakan facility in Pune. Triumph is one of the oldest motorcycle brands (established in 1902), producing 65,000 bikes per year. It operates out of 55 countries in the world with manufacturing or assembly operations in only four countries, i.e. UK,...

In the concall, the management highlighted that its domestic motorcycle market share has suffered due to the recent transition from BS-3 to BS-4 emission norms where all players except Bajaj saw huge pre-buy (at a high discount) and consequently dry channel which was filled last quarter. It expe..

Results below estimates on weak sales: Bajaj Auto reported weak Q1 result due to lower volumes sold in the quarter and higher RM cost. Revenue and EBITDA were 1.5% and 13% below the consensus estimates respectively. Though PAT beat the street estimates by 2%, this was due to 71% jump in the other income (dividend by KTM). Net sales and PA..

Bajaj Auto reported its Q1FY18 results, which were below our estimates on the operational front. Revenues were at | 5442 crore (down 5.3% YoY, up 11.1%QoQ) vs. our estimate of | 5378 crore....

Two-wheeler and three-wheeler maker Bajaj Auto has reported mixed set of earnings. Profit fell by 20 percent year-on-year to Rs 837 crore in the quarter ended June 2017, which was almost in line with expectations. Bajaj Auto reported mixed set of earnings for the first quarter ended June 2017. While net profit on a consolidated basis fell 20% to Rs 836.75 crore in the quarter ended June 2017, revenue fell...

Revenue grew by 10.89% to Rs. 5328.48 Cr in Q1FY18 when compared to the previous quarter. Revenue grew by 10.89% to Rs. 5328.48 Cr in Q1FY18 when compared to the previous quarter.

We cut 3% EPS for FY18E, factoring in lower OPM in 1QFY18, but keep FY19 numbers intact. Maintain BUY with a SOTP-based TP of Rs 3,296 (19x 19E Core EPS + cash + 30% discount for KTM stake) Bajaj Autos (Bajaj) 1Q EBITDA at Rs 9.4bn (-20% YoY) and margin at 17.2% came in below estimates, owing to 279bps YoY fall in gross margin and higher employee expenses. Net revenue came in at Rs 54.4bn (-5.3% YoY), owing to a fall in volumes (-11%YoY), offset by ASP growth (+6.5% YoY). ASP growth was driven by a price hike taken on BS4 vehicles, and a better product mix. APAT at Rs 9.5bn (-2.3% YoY) was above expectations, led by higher other income (dividend received from KTM).

decelerated to 17.6%, lowest since Q4 FY09. The transition to GST resulted into dealer compensation of Rs320 mn, plus destocking of motorcycles before GST implementation (to minimize inventory losses), postponement of buying high end motorcycles by consumers, implementation of post GST prices in mid June itself and some loss of market share v/s competitors led to margin decline. Higher RM costs, increased marketing on CT 100 and Platina...