Hold Bajaj Auto, target price Rs 4530: ICICI Direct

ICICI Direct has hold call on Bajaj Auto with a target price of Rs 4530. The current market price of Bajaj Auto is Rs 4401. Time period given by analyst is a year when Bajaj Auto price can reach defined target.

Bajaj Auto, incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 123416.10 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
Gradual improvement in export markets, traction in 125 cc+ segment and recovery in commuter space to aid growth. The brokerage expects volume, net sales to grow at a CAGR of ~9.4%, ~15.8%, respectively, over FY23-25E• Ramp-up of volumes in electric 2-W space, expansion of network to 120cities by April 2024 from current ~80 cities and unveiling of Electric-3-W.

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.