Bajaj Auto Q4 Results Review - Managing Portfolio: ICICI Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Bajaj Auto Ltd.’s Q4 FY24 Ebitda margin at 20.1% was flat QoQ (versus consensus estimate of 19.7%. Margin was flat QoQ mainly due to mix improvement (higher share of three-wheelers), offsetting the impact of lower volumes. Bajaj Auto is confident of retaining ~20%+ Ebitdam amidst rising scale of e-two-wheelers in coming quarters, purely driven by rising scale of e3Ws and efficient cost management initiatives. We are factoring in 10%/8% growth in domestic volumes and 20%/25% growth in exports in FY25/26E, respectively, resulting in a revenue compound annual growth rate of 27% over FY24-26E (10% average selling price CAGR). We maintain Hold rating on Bajaj Auto with a revised DCF-based target price of Rs 8,660 (core business at Rs 7,692, implying ~20 times FY26E core EPS and cash/other investments of Rs 969) versus Rs 7,274 earlier. Change in target price is driven by rollover in valuation, higher earnings in FY25/26E and building in re-rating driven by the possibility of Bajaj Auto delivering 20%+ Ebitdam despite rising e2W volumes..Click on the attachment to read the full report:.Bajaj Auto Q4 Results Review - Margins Maintained Despite Lower Sequential Volumes: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bajaj Auto Q4 Results Review - Managing Portfolio: ICICI Securities

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