Neutral on Bajaj Auto, target price Rs 4250: Motilal Oswal

Motilal Oswal has neutral call on Bajaj Auto with a target price of Rs 4250. The current market price of Bajaj Auto Ltd. is Rs 3895.85. Time period given by analyst is one year when Bajaj Auto price can reach defined target.
Bajaj Auto Ltd., incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 111498.90 Crore) operating in Auto sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 7715.34 Crore, down -13.11 % from last quarter Total Income of Rs 8879.70 Crore and up 125.78 % from last year same quarter Total Income of Rs 3417.12 Crore. Company reported net profit after tax of Rs 1059.21 Crore in latest quarter.

Investment Rationale
Valuations at 19.7x/17x. FY22E/FY23 consolidated EPS largely capture in the expected recovery. Dividend yield of 4.5-5% would provide a floor for the stock.


Promoter/FII Holdings
Promoters held 53.7 per cent stake in the company as of June 30, 2021, while FIIs held 11.8 per cent, DIIs 12.7 per cent and public and others 21.8 per cent.