KR Choksey's research report on Bajaj Auto
For Q1FY22, Bajaj Auto reported total revenue from operations of INR 73,860 Mn, growth of 140% YoY (-14% QoQ). Domestic Volumes grew by 84.2% YoY at 342,552 units whereas Export volume grew by 160% YoY at 556,753 units. As the quarter witnessed sharp increase in the input cost, EBITDA margin contracted by 270 bps QoQ to 15.5% (+165 bps YoY), EBTIDA for the quarter stood at INR 11,177 Mn (+174% YoY). For the quarter, Net Profit stood at INR 11,699 Mn (+122% YoY), with NPM at 16.2% (-168 bps YoY).
Outlook
We continue to assign a P/E multiple of 24x on FY23E EPS of INR 180 per share and maintain our Target Price of INR 4,352 per share; implying an upside potential of 13.4% over the CMP. Accordingly, we reiterate a “ACCUMULATE” recommendation on the shares of Bajaj Auto Ltd.
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