Buy Bajaj Auto; target of Rs 4589: Sharekhan

Sharekhan is bullish on Bajaj Auto has recommended buy rating on the stock with a target price of Rs 4589 in its research report dated February 18, 2021.

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February 19, 2021 / 02:54 PM IST
 
 
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Sharekhan's research report on Bajaj Auto


BAL is expected to benefit from growth in the premium bikes segment, where BAL continues to gain market share, aided by premiumisation trend and new launches. Moreover, we expect BAL to gain market share in exports, driven by its brand equity and enhanced distribution network in export destinations. Moreover, we expect BAL’s EBITDA margin to remain firm, given the benefits of operating leverage, product mix, and cost reductions achieved during Q3FY2021. The stock trades at P/E multiple of 18.8x and EV/EBITDA multiple of 13.1x its FY2023E estimates.


Outlook


We maintain our Positive stance on Bajaj Auto Limited (BAL) with a Buy rating and revised PT of Rs. 4,589.


For all recommendations report, click here


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TAGS: #Bajaj Auto #Buy #Recommendations #Sharekhan
first published: Feb 19, 2021 02:54 pm