Buy Bajaj Auto, target price Rs 4559: Centrum Broking

Centrum Broking has buy call on Bajaj Auto with a target price of Rs 4559. The current market price of Bajaj Auto Ltd. is Rs 3711.35. 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 107414.48 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 31-12-2021, the company reported a Consolidated Total Income of Rs 9369.31 Crore, up 3.18 % from last quarter Total Income of Rs 9080.50 Crore and up .97 % from last year same quarter Total Income of Rs 9279.06 Crore. Company reported net profit after tax of Rs 1288.42 Crore in latest quarter.

Investment Rationale
For Bajaj Auto, exports share improved to 60% and total volume declined 16.5%YoY and 17.3%QoQ. The brokerage expects ASP/revenue/PAT to grow at 5%/0-11.6%/-24% YoY. It expects EBITDA margin at 14.8%, down 330bp YoY, on the back of higher costs and over a high base.

Promoter/FII Holdings
Promoters held 53.73 per cent stake in the company as of 31-Dec-2021, while FIIs owned 10.2 per cent, DIIs 13.22 per cent.