Bajaj Auto looks to be outperforming: Anish Damania, Emkay Global FinServ

Anish Damania, Head-Institutional Equity, Emkay Global Financial Services Ltd., in a chat with ET NOW talks about Bajaj Auto.

At Emkay, Bajaj Auto is one of your preferred large-cap bets but given the way that stock has managed to outperform Indian markets in last one year, do you think the best of Bajaj Auto is behind us?

In terms of earnings growth momentum, definitely, that is something which has already happened but if you were to look at the next year, it will have a more stable earnings profile. If you look at its product portfolio, it has got three wheelers, which has got a different trajectory than economic growth.

It has got a balanced portfolio between the premium two wheelers and the middle income two wheelers and then you have exports as a percentage, so if you look at the balance of Bajaj’s portfolio, it is fairly stable and that is probably one of the reasons why we like it. We feel that given the economic conditions, Bajaj Auto will be able to withstand the pressure much more than any other auto stock save Tata Motors, which is probably a completely different story altogether.

If I were to look at this kind of a thing, then Bajaj Auto definitely looks to be outperforming. I do not know if it can make any appreciation from hereon but it would definitely not fall in line with the market.