Bajaj Auto Ltd, incorporated in the year 2007, is a Large Cap company with a market cap of Rs 111590.05 Crore, operating in Auto sector.
Bajaj Auto’s key Products/Revenue Segments include Automobile – 2 & 3 Wheelers, Export Incentives, Other Operating Revenue, Scrap for the year ending 31-Mar-2020.
Investment Rationale
Research’s FY22/23 EPS estimates reduces marginally by 1 per cent each to Rs 200.8/Rs 237.1, due to a reduction in volume assumptions. Introducing FY24E EPS of Rs 267.4, factoring in volume growth of 10 per cent and EBITDA margin of 19.7 per cent. Emkay reaffirms buy rating with a target price of Rs4,340 (Rs4,370 earlier), based on 18x FY23E P/E.
Target multiple implies core P/E of 18x and cash/share of Rs 743. Emkay Research added, key downside risks are lower-than-expected demand in key geographies, increase in competitive intensity and adverse currency/commodity prices.
Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 8879.70 Crore, down 4.30 per cent from last quarter’s Total Income of Rs 9279.06 Crore and up 22.59 per cent from last year same quarter’s Total Income of Rs 7243.31 Crore. Company has reported net profit after tax of Rs 1329.78 Crore in latest quarter.
Promoter/FII Holdings
Promoters held 53.7 per cent stake in the company as of Dec 30, 2020, while FIIs held 13.1 per cent, DIIs 9.1 per cent and public and others 24.1 per cent.
