Sharekhan's research report on Bajaj Auto
BAL reported better-than-expected operational performance for Q2FY2023, led by higher average sales realisations, improved US Dollar realisation and a better product mix. The management remains positive on growth prospects in domestic markets, led by new launches, recovery in three-wheeler sales and improving industry prospects, while remain concerned about exports in the near term, though expect Q3 exports to be better than Q2FY23. We expect BAL’s earnings to report a 16.3% CAGR during FY2022-FY2024E, driven by a 11.6% revenue CAGR and a 160-bps improvement in EBITDA margin from 15.9% in FY2022 to 17.8% in FY2024E.
We maintain a Buy on Bajaj Auto Limited (BAL) with a revised PT of Rs. 4,151, factoring positive domestic business outlook, while building the impact of bleak export outlook in select regions. The stock trades below the historical average P/E multiple of 15.9x and EV/EBITDA multiple of 10x its FY2024E.
At 17:30 Bajaj Auto was quoting at Rs 3,569.00, down Rs 36.25, or 1.01 percent.
It has touched an intraday high of Rs 3,663.40 and an intraday low of Rs 3,554.00.
It was trading with volumes of 7,633 shares, compared to its thirty day average of 25,465 shares, a decrease of -70.03 percent.
In the previous trading session, the share closed down 0.52 percent or Rs 18.95 at Rs 3,605.25.
The share touched its 52-week high Rs 4,130.15 and 52-week low Rs 3,028.35 on 01 September, 2022 and 20 December, 2021, respectively.
Currently, it is trading 13.59 percent below its 52-week high and 17.85 percent above its 52-week low.
Market capitalisation stands at Rs 103,275.09 crore.
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