Bajaj Auto Ltd. share price target

Bajaj Auto (BJAUT) Q2FY22 PAT was above our estimates on account of higher than expected EBITDA margins and higher average per unit realizations. We expect domestic 2W market to remain soft in Q3FY22 and likely to post recovery during Q4FY22 while export market continues to show improvement for BJAUT. The Company is anticipated to face margin pressure during Q3FY22, due to high raw material prices. To factor in weakness in domestic 2W market and raw material cost inflation, we revise our Sales and PAT estimates by -1.9%/-12% and -1.2%/-11.2% for FY22E and FY23E respectively. The Company is expected to report EPS of Rs201 and Rs224 for FY23 and FY24...

We maintain our BUY rating on the stock and keep our TP of Rs 4,500/share unchanged (which includes Rs 230/share for the companys stake in PMAG) as we value the stock at 17x its FY23E EPS. TP implies an upside potential of 22% from CMP.

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We upgrade BJAUT to ACCUMULATE' at a revised TP of Rs 4,223 (earlier Rs 3,923) and slightly tweak our estimates to roll over to Sep-23. The company's 2QFY22 revenue came ahead of expectation driven by growth in realization...

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...