Motilal Oswal Financial Services neutral on Bajaj Auto, target price: Rs 4150

Motilal Oswal Financial Services has neutral call on Bajaj Auto with a target price of Rs 4150.The current market price of Bajaj Auto is Rs 3788.2.

Bajaj Auto, incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 105346.44 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 31-12-2022, the company has reported a Consolidated Total Income of Rs 9589.07 Crore, down -8.99 % from last quarter Total Income of Rs 10536.56 Crore and up 2.35 % from last year same quarter Total Income of Rs 9369.31 Crore. Company has reported net profit after tax of Rs 1472.70 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 31-12-2022, the company has a total of 28 Crore shares outstanding.

Investment Rationale
The brokerage expects the company to benefit from market share gains over the long term, fueled by the premiumization trend, the opportunity in exports, and the potential sizeable position in the Scooter market via EVs.

Promoter/FII Holdings
Promoters held 54.98 per cent stake in the company as of 31-Dec-2022, while FIIs owned 11.82 per cent, DIIs 10.89 per cent.