Buy Bajaj Auto, target price Rs 4530: Emkay Global

Emkay Global has buy call on Bajaj Auto with a target price of Rs 4530. The current market price of Bajaj Auto Ltd. is Rs 3436. Time period given by analyst is one year when Bajaj Auto Ltd. price can reach defined target.

Bajaj Auto Ltd., incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 99400.47 Crore) operating in Auto sector.

Bajaj Auto Ltd. key Products/Revenue Segments include Automobile - 2 & 3 Wheelers, Export Incentives, Other Operating Revenue, Royalty Income and Scrap for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 9080.50 Crore, up 17.69 % from last quarter Total Income of Rs 7715.34 Crore and up 22.02 % from last year same quarter Total Income of Rs 7441.66 Crore. Company reported net profit after tax of Rs 1774.60 Crore in latest quarter.

Investment Rationale
Revenue to grow slightly yoy, despite lower volumes (-10%), owing to higher realization (13%). Realization to improve led by price hikes, INR depreciation and benign 3W share. 3W volume share stood at 11% vs. 9% in Q3FY21. EBITDA margin to contract due to lower scale and delays in the pass- through of commodity inflation.

Promoter/FII Holdings
Promoters held 53.7 per cent stake in the company as of 30-Sep-2021, while FIIs owned 11.21 per cent, DIIs 12.85 per cent.