Bajaj Auto may see 15- 17% growth, says Amisha Vora

Bajaj Auto may see 15- 17% growth for next 1 year, says Amisha Vora, Joint Managing Director, Prabhudas Lilladher.

Vora told CNBC-TV18, “In terms of Bajaj Auto numbers the operating profit margin quarter over quarter corrected a bit maybe about 120 bps if I am not mistaken. The absolute operating profit number also compared to Q3 & Q4 is little down but I believe that in the year to come while in the domestic side Honda is upping their end but the exports for them continues to be pretty good and pretty strong. The three wheeler business which is showing little signs of a slow down has a larger impact on their margins which is what is also reflected here.”
She further added, “I believe that when rest of these sectors and stocks where earning growth predictions are very difficult here at least a kind of 15-17% kind of a growth still looks possible and because of which I would feel that on corrections this stock would still be okay for a reasonable performance for the year ahead.”
“SBI, we believe that in terms of NII or NIM the pressure points will not be as high as the way the market will be looking at the gross slippage and the restructuring amount. On gross slippage probably the pressure would be not as intense as it had been in past few quarters, but I think restructuring amount continued to be something which will be little disturbing. Not of course at this price, this price captures a lot of it but restructuring amount will not be something very digestible that is what it appears.”