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IIFL's auto research analyst Prayesh Jain has downgraded M&M's growth forecast post its poor Q2 numbers.
Bajaj Auto has planned two new launches over the next four months. The company expects its Pulsar to clock 60,000-65,000 units per month going ahead.
Prayesh Jain, however, recommends accumulating Bajaj Auto at current market price.
Surjit Arora, Research Analyst, Prabhudas Lilladher prefers investing in Hero MotoCorp over Bajaj Auto.
Sales are expected to increase by 8.7 percent Q-o-Q (up 10.6 percent Y-o-Y) to Rs 5758.7 crore, according to Prabhudas Lilladher.
Sales of Bajaj Auto are expected to increase by 8.6 percent Q-o-Q (up 10.2 percent Y-o-Y) to Rs 5704.2 crore, according to Motilal Oswal.
Revenues are expected to jump 12 percent on yearly basis to Rs 5,790 crore from Rs 5,175 crore on higher volume growth.
As the earnings season winds up and most of India‘s notable corporates have posted their quarterly results updates, net profits were slightly ahead of estimates, according to projections by brokerage firm Kotak, but there was “limited evidence of a meaningful upgrades to earningsâ€.
Rajiv Bajaj, managing director, Bajaj Auto said a steep decline in volumes, (-10 percent in motorcycles and -25 percent in three-wheelers), and the company not passing on higher input costs of its upgraded three-wheeler model were the main reasons for the lackluster quarterly performance.
Bajaj Finance's Q3 PAT is up 21 percent. However, the company took an accelerated provisioning in Q3 (a one-time number), adjusted for that, it would have been a 30 percent profit growth, says Rajeev Jain.
Bajaj Auto's profits will likely increase year-on-year, thanks to the rupee decpreciation, but its domestic business has suffered a slowdown in the face of strong competition from Honda.
According to ICICIdirect.com, sales of Bajaj Auto are expected to increase by 1.7 percent Q-o-Q (down 2.8 percent Y-o-Y) to Rs 5,263.8 crore.
According to Motilal Oswal, sales of Bajaj Auto are expected to increase by 0.8 percent Q-o-Q (down 3.6 percent Y-o-Y) to Rs 5216.8 crore.
According to Emkay Global Financial Services, sales of Bajaj Auto are expected to increase by 3 percent Q-o-Q (down 1.6 percent Y-o-Y) to Rs 5,328.7 crore
Bajaj Auto lost 2 percent market share in the two-wheeler segment during the quarter, and is hoping to recoup it through the new variant of the Discover model. Rajiv Bajaj is expecting strong festive season sales to boost the company‘s bottomline, as festive sales typically increase 70-100 percent every year.
Analysts on an average expect profit of two-wheeler company to rise 7.3 percent year-on-year to Rs 795 crore, but revenues may fall 1.5 percent Y-o-Y to Rs 4,900 crore in September quarter due to weak domestic demand and strike at Chakan plant.
According to ICICIdirect.com, Bajaj Auto may report a 9.3 percent growth quarter-on-quarter (growth of 8.9 percent year-on-year) in net profit at Rs 806.4 crore.
According to KR Choksey, Bajaj Auto may report a 4 percent degrowth quarter-on-quarter (degrowth of 4 percent year-on-year) in net profit at Rs 711 crore.
According to Kotak Securities, Bajaj Auto may report a 10.6 percent growth quarter-on-quarter (growth of 16.3 percent year-on-year) in net profit at Rs 815.9 crore.
According to Motilal Oswal, Bajaj Auto may report a 6.4 percent growth quarter-on-quarter (growth of 6 percent year-on-year) in net profit at Rs 785.1 crore.
Hero MotoCorp's net profit is likely to fall on the back of higher average tax rate, as tax incentives it got at Haridwar plant have expired, and sales volumes in the first quarter declined 5 percent.
Bajaj Auto is launching 6 new variants of the Discover motorcycle and that coupled with a pickup in rural demand post good monsoon rains should boost domestic demand in the second half.
The company‘s first quarter earnings matched market expectations, even though volume sales declined. Bajaj said his company had not lost any material market share on a year-on-year basis, adding that it had a 46 percent market share in the sports bike segment.
The India's second largest motorcycle maker is expected to report a marginal drop in revenue in April-June quarter, but margins will be boosted by price hikes, favourable currency hedges and increased export realisations.
KR Choksey expects Bajaj Auto to report a 1 percent degrowth quarter-on-quarter (growth of 6 percent year-on-year) in net profit at Rs 759 crore.