Buy Bajaj Auto; target of Rs 2092: Firstcall Research

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Firstcall Research report on Bajaj Auto

"Bajaj Auto posted net profit of Rs. 9045.50 mn is the highest ever quarterly profit. The company recorded the operating EBITDA of Rs 10920 mn in Q3 FY14 as against Rs 10850 million in the previous year period. Slowdown in industrial and economic growth, overall high inflation and rising input cost, Bajaj Auto declared an industry high EBITDA margin of 21.1 percent in Q3 FY14 as against 19.8 percent in Q3 FY13 and its highest ever quarterly profits, driven by a strong export realization and an average price rise of 500-1,000 on all vehicles during the quarter."

"Net sales for the quarter were Rs 51312.40 million against Rs 54127.10 million in last year same quarter. Sales during festive period, though reasonable, were not robust. Subsequently, in November and December, industry sales continued to remain sluggish. In addition, the quarter witnessed a marked increase in input cost – steel, aluminium and other imported components. Profit before tax grew by 12 percent to Rs 13108.80 million from Rs 11737.60 million in Q3 FY13. Profit before tax for the quarter is the highest ever quarterly profit. Exports are increased by 23.50 percent to Rs 21230 million compared to Rs 17190 million in previous year period. Cash and cash equivalents as on 31st December 2013 stood at Rs 69200 million as against Rs 65160 million as on 30th September 2013."

"The company’s outperformance in margins can be attributed to factors including transforming itself into an Indian multinational company with international business contributing 40 percent of total revenue. Over the last five years, strategic initiatives taken to enter into difficult markets, like Africa, is yielding rich dividends. Bajaj Auto expects exports to remain strong, and is in the process of launching six new products to beat the slowdown and competition in the country. Over FY2012-15E, we expect the company to post a CAGR of 3 percent and 5 percent in its topline and bottom-line respectively. Hence, we recommend ‘BUY’ for the stock with a target price of Rs 2092 on the stock," says Firstcall Research Report.

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