Bajaj Auto Ltd. share price target

Bajaj Auto (BAL) delivered muted Q1FY16 performance with operating margins and profit coming below our as well as street's estimates. Its revenues/EBIDTA/PAT grew 7%/15%/29% YoY and 18.4%/37%/64% QoQ to Rs 56bn/11.4bn/10.1bn as against our estimate of Rs 61.3bn/12.7bn/9.9bn respectively. Its volume rose 2.5%YoY/29.4%QoQ to 1mn units. Its realization/vehicle improved by 4.6% YoY, which is much lower than estimates, despite higher export contribution, favourable currency and higher 3W contribution. Management cited price rationalization and product mix in overseas markets as key reason behind lower ASP.

Buy at Rs 2,306.4 and add on dips to Rs 2,096 - Rs 2,170 for Target of Rs 2,503 in 1 quarter

Bajaj Autos 4QFY15 APAT at Rs 6.2bn was inline but further adjustment for lumpy expense (higher gratuity charge) depicts better than expected underlying performance. While volumes declined by 21% QoQ, Net ASP rise of 5.4% QoQ led to higher than expected topline of Rs 47.4bn.

Bajaj Auto (BAL) delivered muted Q4FY15 performance with operating margins and net profit coming below our as well as street's estimates. Its revenues/EBIDTA/PAT declined 4%/14%/22% YoY and 16%/28%/23% QoQ to Rs 47.4bn/8.3bn/6.2bn as against our estimate of Rs 45.3bn/8.6bn/6.9bn respectively.

Bajaj Auto Upgrade: Bajaj Auto's (BAL) stock price fell by over 17% from its recent peak level, mainly due to ongoing slowdown in domestic industry coupled with economic issues in its exports market. We believe that the near-term slowdown in domestic market as well as exports headwind to continue impacting company's volumes over next 4-6 months. However, we expect strong revival in both the markets H2FY16 onwards.

Bajaj Auto: Q3FY15 Result Review

Bajaj auto is engaged in the manufacturing and sale of scooters, motorcycles, three wheeler vehicles and spare parts in India and International market. In the year ending March 2012, company sold 4.34 million units which were highest...