Accumulate Bajaj Auto; target of Rs 2583: Angel Broking

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Angel Broking`s research report on Bajaj Auto“Bajaj Auto (BJAUT)’s adjusted results for 2QFY2015 were broadly in line with our estimates. The top-line for the quarter grew 15.2% yoy to Rs5,963cr, slightly higher than our estimate of Rs5,721cr. Volumes grew 10% yoy led by strong motorcycle exports (29% growth) and three wheelers (40% growth). Realisation, at Rs56,491/vehicle, grew 5% yoy (better than our estimate of Rs54,202/vehicle), boosted mainly by higher export realization and price hikes. The company realized INR61.5 / USD in 2QFY2015 as against INR60.9 / USD in the corresponding quarter last year. On the operating front, the adjusted margin at 20% was broadly in line with our estimate of 19.6%. However, the exceptional items charge of Rs340.2cr on account of NCCD and Rs67.4cr of MTM loss on forex hedges, impacted profitability. The reported net profit at Rs591cr was significantly lower than our estimate of Rs860cr.” “Going ahead, the Management expects growth momentum to continue in the domestic motorcycle industry (expects 10% volume growth in 2HFY2015). The company also expects market share gains on the back of new Discover 150 and new launches planned ahead. Additionally, continued strong growth in Africa and Latin American markets is likely to boost export sales (volume growth of 20% expected in FY2015). Further, new permits in the domestic market such as Delhi, Hyderabad and Maharashtra and strong traction in exports are likely to lift three wheeler volumes. We marginally increase our EBITDA margin and earnings expectations for FY2015/16 due to higher export realization and strong export outlook. Nevertheless, we retain our Accumulate rating on the stock.” “We maintain our positive stance on the company, given its diversified business model, strong focus on profitable growth, widening reach in export markets and strategic alliances with global majors. At the CMP, the stock is trading at 14.6x FY2016E earnings. We retain our Accumulate rating on the stock with a target price of Rs2,583, valuing the stock at 16x FY2016E earnings,” says Angel Broking research report. 

For all recommendations, click here 

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More