Angel Broking has maintained neutral rating on Bajaj Auto in its July 10, 2008 report. "We model 7% and 9% volume growth for BAL in FY2009 and FY2010, respectively. Two-wheeler sales continue to be adversely impacted by the stringent financing norms, which have resulted in volumes declining sharply. We maintain that outlook for the domestic two-wheeler industry continues to be muted due to the non-availability of finance, rising urban penetration and changing lifestyle shift towards the four-wheeler segment. Nonetheless, the positive yoy growth reported in 1QFY2009 indicates at a recovery in FY2009, though near term volume figures need to be watched closely owing to further tightening of finance available and rise in interest rates. We estimate BAL to clock EPS of Rs 59 in FY2009 and Rs 66.9 in FY2010. At the CMP, the stock is trading at 8.4x FY2009E and 7.4x FY2010E EPS. We remain Neutral on the stock" according to Angel Broking report.
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