Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Buy Bajaj Auto; target of Rs 4350: Emkay Global Financial

Emkay Global Financial is bullish on Bajaj Auto has recommended buy rating on the stock with a target price of Rs 4350 in its research report dated May 10, 2022.

May 12, 2022 / 05:46 PM IST
  • bselive
  • nselive
Todays L/H

Emkay Global Financial's report on Bajaj Auto

In an interaction with Emkay, new CFO Mr. Dinesh Thapar reiterated expectations of a strong recovery in domestic 2Ws and an aggressive focus on EVs. He expects domestic 2W recovery from FY23E onward, with signs of a demand pickup in rural, student and salaried segments. BJAUT is focusing on the EV space and has planned a slew of launches in 2Ws/3Ws across various use-cases over the next 2-3 years. In Jun’22, BJAUT plans to launch an E3W and commission an E-2W plant with an annual capacity of 500,000 units. We expect an 11% CAGR in total volumes over FY22-24E, driven by a recovery in domestic 2W/3W volumes (13%/26% CAGR). We estimate revenue/earnings CAGRs of 15%/18% over FY22-24E, with average FCF generation of Rs32bn.


We maintain Buy with a TP of Rs4,350 based on 17x Jun’24E Core EPS, value of investments at Rs224/share and cash reserves of Rs725/share. Our target multiple is based on a two-stage DCF model.


For all recommendations report, click here

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

Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Broker Research
first published: May 12, 2022 05:46 pm
ISO 27001 - BSI Assurance Mark