Buy Bajaj Auto target of Rs 3670: Sharekhan

Sharekhan's research report on Bajaj Auto

For Q3FY2020, BAL’s operating results were better than our as well as street expectations due to better product mix and soft commodity prices. BAL is expected to continue outpacing industry due to new launches in domestic market (with enhanced features) and strong growth in exports. We expect robust 8% CAGR volumes over FY20-22. We have marginally raised our FY2021 and FY2022 estimates by 3% each in view of better than anticipated margins in Q3FY20.

Outlook

We retain Buy rating on Bajaj Auto Ltd (BAL) with a revised PT of Rs 3,670. BAL remains our preferred pick in the 2W space.