Bajaj Auto Ltd. share price target

BAJAJ AUTO LIMITED| Auto & Auto Components Exports and 3Ws to provide fillip...domestic demand challenges persist Bajaj Auto's topline expanded by 19.1% yoy on 9% volume growth and 10% realization growth. This was a sequential growth of 16.2%. Sequentially the volume growth was 13.8%. During the quarter, domestic motorcycles de-grew by 11% yoy, while 3Ws zoomed by 88% yoy. Exports motorcycles grew by 31% yoy, while 3Ws growth was at 8%. Realizations grew by 9.6% yoy in...

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We recommend to BUY on the stock.

We maintain our BUY rating on the stock and keep our TP unchanged at Rs 4,250 (which includes Rs 200/share for the companys stake in KTM) as we value the stock at 17x its FY23E EPS.

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...

Bajaj Auto (BJAUT) Q1FY22 PAT was below our and consensus estimates on account of higher than expected contraction in EBITDA margins and lower average per unit realizations. We expect domestic 2W/3W market to post recovery during H2FY22 while export market continues to show improvement for BJAUT. The Company is anticipated to face margin pressure during Q2FY22, however based on strong operating leverage BJAUT is expected to mitigate cost pressure in the medium term. To factor in improved business outlook and raw material cost inflation, we revise our Sales and PAT estimates by 5.7%/1.3% and 2.6%/-2.9% for FY22E and FY23E respectively. The Company is...

EBITDA was at Rs 1,153 crore in Q1 FY22 as against Rs 441 crore in Q1 FY21 and Rs 1,558 crore in Q4 FY21. EBITDA margin was at 15.6% as on 30 June 2021 compared with 14.3 as on 30 June 2020. EBITDA margin was at 18.1% as on 31 March 2021. Bajaj Auto said that the decline in EBITDA margin was due lower revenue from operations which resulted in loss on spread of fixed costs by approximately 160 bps and increase in cost of raw-material, net of increase in prices, resulted in lower EBITDA margin by approximately 220 bps. Higher raw material costs were,...

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We maintain our BUY rating on the stock keeping our TP of Rs 4,250 unchanged (which includes Rs 200/share for the company's stake in KTM) as we value the stock at 17x its FY23E EPS.