ICICI Direct has given Hold recommendation for Bajaj Auto with a target price of Rs. 3460 in its research report issued on Jan 20, 2022

ICICI Direct’s research report on Bajaj Auto

Bajaj Auto (BAL) is the second largest motorcycle manufacturer and largest 3-W OEM domestically (FY21 market share at 18%, 50.6% respectively). Exports comprised ~52% of FY21 volumes; >125 cc motorcycles constituted ~28% of FY21 volumes with Pulsar 125 enjoying good success • Strong b/s with ~Rs 17,500 crore surplus cash on books (H1FY22), history of >20% return ratios & one of the highest dividend yields among Nifty stocks.

Outlook

We maintain HOLD rating on the stock amid technology translation in the domestic automobile space with BAL steadily progressing in this domain. We value BAL at Rs 3,460 on SOTP basis (17x PE on FY23-24E average standalone EPS, stake in PMAG; previous target Rs 4,220).

More Info on Trent

At 17:30 Bajaj Auto was quoting at Rs 3,499.00, up Rs 0.35, or 0.01 percent.

It has touched an intraday high of Rs 3,560.50 and an intraday low of Rs 3,485.50.

It was trading with volumes of 13,398 shares, compared to its thirty day average of 16,171 shares, a decrease of -17.15 percent.

In the previous trading session, the share closed up 0.97 percent or Rs 33.70 at Rs 3,498.65.

The share touched its 52-week high Rs 4,361.20 and 52-week low Rs 3,028.35 on 04 February, 2021 and 20 December, 2021, respectively.

Currently, it is trading 19.86 percent below its 52-week high and 15.41 percent above its 52-week low.

Market capitalisation stands at Rs 101,249.52 crore.

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