Bajaj Auto Ltd. share price target

Bajaj Auto's (BJAUT) Q2FY21 operating performance was in line with our estimates, but adj. PAT fell short (19% YoY to Rs 11.4bn) owing to below-expected other income.

We maintain Buy rating on Bajaj Auto (Bajaj) with unchanged PT of Rs 3,500. Demand is improving in both domestic as well as export markets. Q2FY21 operating results were ahead of estimates as margins improved on a y-o-y basis...

Seminal year for industry provides interesting insights However, amid all the gloom, the engineering and production prowess of the industry (along with its value chain) shone brightly as it successfully completed the world's fastest switchover to Euro 6 equivalent emission norms i.e. BS-VI as per schedule. Much of the post festive period was focused on the transition, with the entire ecosystem estimated to have spent ~| 70,000 crore towards the technological leap. Covid-19 crisis struck India in the run up to April 2020, just as the changeover...

We upgrade our rating from HOLD to BUY with a Target Price of Rs 3,300 (earlier 2,850) valuing it at 16x (earlier 17x) FY23E PE ratio (including Rs 120/share for its stake in KTM) which gives an upside of ~8% from current levels.

Bajaj Auto is the world's sixth-largest manufacturer of motorcycles and the second-largest in India. It is also the world's largest three-wheeler manufacturer. The company is based in Pune, Mumbai with plants in Chakan (Pune), Waluj (near Aurangabad) and Pantnagar in Uttarakhand. Bajaj Auto...

Numbers bottomed out in Q1, heading towards recovery Resilience displayed in pandemic hit quarter Bajaj Auto posted a 61% yoy decline in the topline in COVID hit Q1, while they declined by 55% qoq. The volumes fell by 64.5% yoy and 55% qoq as there was a stringent lockdown observed in the earlier part of the quarter. Realizations grew by 9.8% yoy, which were very well supported by export realizations and a higher proportion of BS 6 vehicles. EBITDA declined by 66% yoy to 4.1 bn, while margins still showed a better performance at 13.3%, much better than street's expectations, though it was lower by 210 bps yoy. The overall underperformane stemming from...