Bajaj Auto Ltd. share price target

in pulsar exports made the mix favourable and hence beat on revenues and margins. We continue to believe that domestic sales would remain strong led by new launch success, whereasneartermexportoutlookremainssluggish(improvingsequentiallyhoweverflatto...

Profit to sustain amid sensible volume growth Bajaj Auto (BAL) has registered higher-than-expected operating performance in 4QFY16, while its reported bottom line came in line due to higher-than-expected tax rate. Its revenue topped our estimate by 3.2% and EBIDTA beat our estimate by 12.3%. BAL has declared Rs5 apiece final dividend in addition to Rs50 apiece interim dividend for FY16....

Results in line with estimates: Bajaj Auto Ltd (BAL)'s 3QFY2016 results have come in in line with our estimates. The company's revenues expectedly declined by 2% yoy to Rs5,565cr. The decline in revenues was on account of a 3% drop in volumes. Domestic volumes grew in double digits (10%) led by new product launches (Avenger and Pulsar variants) which led to market share gains. However, export volumes fell steeply by 16% yoy led by demand slowdown in Africa and Egypt markets due to slide in crude oil prices. Realisation/vehicle grew 2% yoy led by favourable currency movement (INR depreciation as against the USD). The company realized about INR 66/USD in 3QFY2016 as against INR 63/USD realized in 3QFY2015. The company's operating margin declined marginally by 70bp yoy to 21% (coming broadly in line with our estimates of 21.5%). Lower export mix and price cuts in African market to stimulate demand led to the dip in margins on a yoy basis. The operating profit at Rs1,171cr was in line with our estimate of Rs1,181cr. Other income more than doubled yoy to Rs200cr, coming in higher than our expectation of Rs165cr. The Net Profit at Rs901cr was broadly in line with our...

Key highlights: Good performance with the company posting strong margins despite headwinds in the exports segment and weaker product mix. Nearterm export outlook remains weak due to key export markets of Africa and LatAm struggling due to dollar...

Bajaj Autos 3QFY16 EBITDA at Rs 11.7bn ( 2% YoY) was slightly above our estimates aided by lower commodity prices. APAT at Rs 9bn ( 5% YoY) beat expectations by 9% led by MTM gains and lower tax outgo. With overall volumes for 3Q declining 3% YoY, Bajaj?s net sales declined by 1.6% YoY to Rs 55.7bn.

Q3 FY16 results came above our expectations despite exports worries Bajaj Auto posted a good set of numbers despite exports underperformance. On the back of reduction in commodity costs and higher realizations coming from better...

Bajaj Auto (BAL) delivered decent Q3FY16 performance with operating margins and EBIDTA coming in line with our estimates. Its revenues/EBIDTA/adj PAT rose -1.6%/2%/6.3% YoY, but fell 8.7%/11.1%/7.5% QoQ to Rs 56.6bn/11.7bn/8.6bn as against our estimate of Rs 55.8bn/11.7bn/8.8bn respectively.

Despite 3.4% yoy decline in volumes, Bajaj Auto Limited (BAL) maintained its EBIDTA margin in excess of 20.0% range, which in our view is largely supported by better product-mix reflected in 1.8% yoy increase in realization. Hereon, we make a note that it is imperative for BAL to maintain better product-mix than to realize increase in volumes, given better product mix delivers healthy profitability than plain vanilla volume growth. Post healthy customer response, the management plans to expand manufacturing capacity of the Avenger to 30k / month by March 2016, given BAL sold more than 20k Avengers in Dec 2015 compared to earlier run...