Prabhudas Lilladher has given Buy recommendation for Bajaj Auto with a target price of Rs. 3911 in its research report issued on Jan 20, 2022

Prabhudas Lilladher’s research report on Bajaj Auto

Bajaj Auto’s 3QFY22 performance came in-line with our estimates, with realization growing 12% YoY on the back of price hikes and higher exports (56% of the total volumes vs 53/54% YoY/QoQ). We remain positive on Bajaj’s growth story as (1) exports are expected to drive the show in near-term, with management targeting 2.5mn units in FY22 vs a peak of 2.1mn in FY20 (2) despite 2W sales being sluggish in 3QFY22, decline for Bajaj (-20%) has been lower than the industry (-25%); which has led to market share gains (100bps from FY21) largely driven by strong reception of Pulsar 125 NS (3) 3W volumes are showing signs of improvement (+16% QoQ) driven by opening up of the economy, increasing CNG network & availability of retail financing and (4) stabilizing commodity prices and cost pass-ons will aid in margin expansion.

Outlook

We trim our estimates by 2/4% for FY23/24 and maintain ‘BUY’ with a target price of Rs 3,911 at 16x Dec-23E EPS.

More Info on Trent

At 16:00 hrs Bajaj Auto was quoting at Rs 3,495.00, down Rs 3.65, or 0.10 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 16,178 shares, a decrease of -17.18 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 101,133.77 crore.

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