Bajaj Auto Ltd. share price target

Unfavorable mix drags realizations QoQ: Net sales grew ~2.7% YoY (+7.2% QoQ) to INR57.5b (v/s est. of INR58b) as realizations increased 4.5% YoY (-6% QoQ), while volumes declined 1.8% YoY (+14% QoQ). Realizations declined QoQ due to a weaker product mix, mainly impacted by a fall in contribution from 3Ws (150bp QoQ) and lower exports (-100bp QoQ). Lower USD/INR rate (INR67.1 in 1QFY17 v/s INR67.5 in 4QFY16) too pulled down realizations. EBITDA margins decline due to weaker exports: Gross margins declined 130bp QoQ (+20bp YoY) due to unfavorable product mix (lower share of exports and higher share of entry-level motorcycles), adverse FX rate and rising commodity...

Bajaj Auto (BAL) delivered decent Q1FY17 performance with operating margins and EBIDTA coming in line with our estimates. Its revenues/EBIDTA/adj PAT rose 2.7%/3.2%/2.2% YoY but fell 7.2%/2%/3.1% QoQ to Rs 57.5bn/11.8bn/9.8bn as against our estimate of Rs 57.1bn/11.6bn/9.2bn respectively. Its volume declined by 1.9% YoY but up 14.1% QoQ to 0.994mn units. Its realization/vehicle fell 5.9% QoQ (up 4.8% YoY) due to product mix (lower 3Ws), geographical mix and price rationalization in exports market. Its export realization/vehicle in USD terms fell 4.2% YoY due to product mix (lower 3W contribution) and price rationalization by passing on currency benefit. It's EBIDTA margin rose 10bps YoY (down 104bps QoQ) to 20.5% (Our Est was 20.3%), as RM/Sales fell 18bps YoY (up 132bps QoQ) to 67.2% and Other Exp/Sales decreased by 25 bps YoY/117 bps QoQ to 7.7%.

Operating performance of Bajaj Auto (BAL) came broadly in line with our estimates with 7.4% higher-than-expected PAT owing to higher other income, while revenue and EBIDTA missed our estimate by meagre 2.0% & 3.4% in 1QFY17. We continue to appreciate BAL's strategy to focus on premium motorcycle segment and maintain its EBIDTA margin in high trajectory. Further, strong cash in books Rs107.01bn translating into Rs370/share augurs well for BAL. We upgrade our recommendation to BUY on the stock with an...

ICICI Securities Ltd | Retail Equity Research Bajaj Auto reported its Q4FY16 results, which were above our estimates on the operational front. Net revenues were at | 5411 crore...

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...