Sharekhan has given Buy recommendation for Bajaj Auto with a target price of Rs. 4800 in its research report issued on Dec 22, 2021

Sharekhan’s research report on Bajaj Auto

BAL’s management remained positive on the growth prospects, especially exports, where BAL expects to gain market share key markets, driven by brand recall, product launches, enhanced distribution network and value for money proposition. BAL is expected to benefit from the growth in the premium bikes segment, which is expected to recover, aided by the premiumization trend, new launches and easing chips shortage situation. Stock trades at comfortable valuation of 13.9x P/E and 8.8x EV/EBITDA of FY23E estimates.

Outlook

We maintain our Buy rating on Bajaj Auto Limited (BAL) with an unchanged of Rs. 4,800, factoring strong business outlook and comfortable valuations.

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