Motilal Oswal's research report on Bajaj Auto
We met with the management of Bajaj Auto (BJAUT) to receive updates on its existing businesses, new growth drivers, and EV plans. While export volumes are bottoming out and likely to recover only from 2QFY24E, its entry in Brazil and the upcoming Triumph launch are the new growth drivers. BJAUT’s EV plans are gathering momentum with the recent launch of low-speed 2Ws under Yulu brand as well as the upcoming e-3W launches. However, the management cautioned on commodity cost inflation that is gaining in strength from the lows of 3QFY23.
Outlook
At 15.4x/14x FY24E/FY25E consolidated EPS, the stock’s valuation fairly reflects the expected recovery as well as the risk from EVs. BJAUT’s dividend yield of 5.0-5.5% should support the stock. We reiterate our Neutral rating with a TP of INR4,150 (premised on 16x Dec-24E consolidated EPS).
For all recommendations report, 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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
