Buy Bajaj Auto, target price Rs 4782: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has buy call on Bajaj Auto with a target price of Rs 4782. The current market price of Bajaj Auto is Rs 4323.95.

Bajaj Auto, incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 122195.14 Crore) operating in Auto sector.

Bajaj Auto key Products/Revenue Segments include Automobile - 2 & 3 Wheelers, Export Incentives, Other Operating Revenue, Royalty Income and Scrap for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 9192.73 Crore, down -4.13 % from last quarter Total Income of Rs 9589.07 Crore and up 11.24 % from last year same quarter Total Income of Rs 8263.70 Crore. Company has reported net profit after tax of Rs 1373.58 Crore in latest quarter.

The company’s top management includes Mr.Niraj Bajaj, Mr.Pradip Shah, Mrs.Lila Poonawalla, Mr.Anami Roy, Dr.Naushad Forbes, Mr.D J Balaji Rao, Mr.Shekhar Bajaj, Mr.Sanjiv Bajaj, Mr.Rakesh Sharma, Mr.Pradeep Shrivastava, Mr.Rajiv Bajaj, Mr.Madhur Bajaj, Mr.Abhinav Bindra. Company has SRBC & Co LLP as its auditors. As on 31-03-2023, the company has a total of 28 Crore shares outstanding.

Investment Rationale
The company has been recovering faster in the three-wheeler (3W) segment. We expect BAL to continue to
increase its market share in domestic and export markets, given its strong portfolio of premium brands and cost-effective entry-level products. The brokerage believes the company's diversified geography mix and strong presence in the domestic premium motorcycle segment allow it to support its operating performance even in a weak business scenario.

Promoter/FII Holdings
Promoters held 54.98 per cent stake in the company as of 31-Mar-2023, while FIIs owned 12.35 per cent, DIIs 10.79 per cent.