Moneycontrol Be a Pro
Get App
Last Updated : Jun 19, 2019 03:58 PM IST | Source: Moneycontrol.com

Buy Bajaj Auto; target of Rs 3484: KR Choksey

KR Choksey is bullish on Bajaj Auto has recommended buy rating on the stock with a target price of Rs 3484 in its research report dated May 21, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

KR Choksey's research report on Bajaj Auto


In Q4FY19, Bajaj Auto reported total revenue from operations of INR 7,395 Cr, a growth of 9% YoY (down 0.2% QoQ) slightly above our estimates of INR 7,221 Cr. Volumes increased 14% YoY (down 5% QoQ). EBITDA margin contracted by 370 bps YoY to 16% (+12 bps QoQ) indicating margin pressures due to increase in cost of materials consumed. EBIT decreased by 10% YoY to INR 1,101 Cr (+0.7% QoQ) and EBIT margins expanded by 15 bps sequentially. Overall, Net Profit increased by 30.4% YoY to INR 1,408 Cr (+27.8% QoQ) with NPM at 19.5% (+428 bps QoQ/+326 bps YoY). The Board of Directors recommended a dividend of INR 60 per share for FY19.


Outlook


We apply a P/E multiple of 17.4x on FY21E EPS of INR 200 to arrive at a target price of INR 3,484 per share; an upside potential of 15.9%. Accordingly we rate the shares of Bajaj Auto a “Buy”.


For all recommendations report, 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.




The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Jun 19, 2019 03:58 pm
Loading...
Sections
Follow us on
Available On