Buy Bajaj Corp; target of Rs 469: Reliance Securities

Bajaj Corp has reported below par numbers in 2QFY17 with its net sales growing by 3.5% yoy to Rs 2bn, while EBITDA rose 3.8% yoy to Rs 672mn. However, reported net profit grew by robust 24% yoy to Rs 583mn, mainly on the back of sharp jump in other income (up 91% yoy) and lower amortisation with respect to acquisition of Nomarks. While we have revised our earnings estimates downwards by 5%, we believe that the risk reward ratio from the current situation remains favourable. We envisage 10.6% & 21.5% CAGR in revenues and earnings, respectively through FY16-18E and maintain our BUY recommendation on the stock with revised Target Price of Rs 469.For all recommendations, 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.