Motilal Oswal has given Neutral recommendation for Bajaj Auto with a target price of Rs. 4200 in its research report issued on Oct 28, 2021
Motilal Oswal’s research report on Bajaj Auto
Bajaj Auto’s (BJAUT) 2QFY22 performance was impacted by high RM cost. While exports remained robust and domestic 3W continued to recover, a recovery in domestic 2Ws is still awaited. BJAUT’s ramp-up in EVs would be a key monitorable as the competitive landscape evolves. The company’s higher dividend yield will provide support to the stock’s valuation.
We lower our FY22E/FY23E EPS by 5%/4% to account for the weaker domestic volumes and cost inflation. Maintain Neutral with a TP of INR4,200.