Sharekhan has given Buy recommendation for Bajaj Auto with a target price of Rs. ekhan is bullish on Bajaj Auto has recommended buy rating on the stock with an unchanged price target of Rs. 4,800 in its research report issued on Oct 28, 2021

Outlook

BAL’s business outlook remains positive with a recovery expected in FY2022, as economic activities normalise in the domestic market. The management expects exports to remain a key growth driver in FY2022. We expect BAL to continue to increase its market share in the domestic and export markets, given its strong portfolio of premium brands and cost-effective, entry-level electronic injection systems. OPM would expand because of a richer product mix, operating leverage and cost-control measures. The company has strong long-term revenue visibility, given its leadership position in the premium bikes segment and key export destinations. The stock trades below its historical average P/E multiple of 14.5x and EV/EBITDA multiple of 9.4x its FY2023E estimates. Hence, we retain our Buy rating on the stock with an unchanged price target of Rs. 4,800.

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