Motilal Oswal has given Neutral recommendation for Bajaj Auto with a target price of Rs. 3500 in its research report issued on Jan 20, 2022

Motilal Oswal’s research report on Bajaj Auto

Bajaj Auto (BJAUT)’s 3QFY22 beat was driven by lower RM cost pressures and favorable Fx. While exports remained robust and domestic 3W continued to recover, domestic 2Ws are yet to see recovery. In EVs, BJAUT is focusing on aggressively rolling out Chetak after ironing out supply chain issues. The e-3W launch is planned for FY23E.  While we maintain our EPS estimates, we cut our P/E multiple to 16x (v/s 18x earlier) to account for hyper-competition in e-2Ws and the EV threat to the dominance of domestic 3Ws.

Outlook

We maintain a Neutral rating, with TP of INR3,500.

 

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