Buy Bajaj Auto; target of Rs 4327: Sharekhan
Sharekhan is bullish on Bajaj Auto has recommended buy rating on the stock with a target price of Rs 4327 in its research report dated January 21, 2021.
February 01, 2021 / 06:35 PM IST
Sharekhan's research report on Bajaj Auto
BAL reported robust PAT growth of 23.4% y-o-y at Rs. 1,556 crore, driven by better-than-expected improvement in operating profit margin. We expect BAL to benefit from growth in the premium bikes segment, where BAL continues to gain market shares, aided by premiumisation trend and new launches. Moreover, we expect BAL to gain market share in exports, driven by its brand equity and enhanced distribution network in export destinations. The stock trades at P/E multiple of 17.1x and EV/EBITDA multiple of 11.5x its FY2023E estimates.
We maintain our Positive stance on Bajaj Auto Limited (BAL) and has upgraded our estimates and price target to factor in improved operational efficiencies. We recommend BUY with PT of Rs. 4,327.
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