ICICI Direct's research report on Bajaj Auto
Bajaj Auto (BAL) is the 2nd largest motorcycle manufacturer and largest 3-W OEM domestically (FY22 market share at 18.2%, 61.5% respectively). Exports comprised ~58% of FY22 volumes; 2W:3W mix at ~89:11 (overall) • Strong b/s with ~Rs 21,260 crore cash on books (FY22), history of ~20% return ratios & one of the highest dividend yields among Nifty stocks.
We maintain HOLD rating on BAL primarily tracking lower than anticipated recovery in domestic 3-W sales volume and delay in electric 3-W launch. Upgrading our estimates, we now value BAL at Rs 4,180 on SOTP basis (16x PE on FY24E Core EPS, stake in PMAG; previous target: ₹3,950).
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