Neutral on Bajaj Auto, target price Rs 3300: Motilal Oswal
Bajaj Auto Ltd., incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 86989.51 Crore) operating in Auto sector.
By ETMarkets.com | Updated:
Agencies
Promoters held 53.7 per cent stake in the company as of Sept 30, 2020, while FIIs held 13.6 per cent, DIIs 10.4 per cent and public and others 22.3 per cent
Motilal Oswal has given a neutral rating to Bajaj Auto with a target price of Rs 3300. The share price moved up by 0.57 per cent from its previous close of Rs 3009.25. The stock’s last traded price is Rs 3026.50.
Bajaj Auto Ltd., incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 86989.51 Crore) operating in Auto sector.
Financials For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 7041.48 Crore, up 138.81 % from last quarter Sales of Rs 2948.52 Crore and down -6.10 % from last year same quarter Sales of Rs 7499.21 Crore Company reported net profit after tax of Rs 1137.69 Crore in latest quarter.
Investment Rationale Bajaj Auto would benefit from a) the premiumization trend and b) good growth opportunity in exports. While domestic 3W recovery may be delayed, it is vulnerable to possible disruption from electrification. Valuations at 19.1x/15.2x FY21/FY22E consol. EPS largely capture the strong recovery from 2HFY21 and beyond. The brokerage maintains Neutral, with TP of INR 3,300. Promoter/FII Holdings Promoters held 53.7 per cent stake in the company as of Sept 30, 2020, while FIIs held 13.6 per cent, DIIs 10.4 per cent and public and others 22.3 per cent
