Bajaj Auto Q4 Results Review - Positives Largely Factored In Rich Valuations, Maintain Hold: Axis 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..Axis Securities Report.Bajaj Auto Ltd. reported a strong set of results in Q4 FY24. Revenue stood largely in line with our estimates with a ~3% beat at Rs 11,178 crore, up ~29.5% YoY (down ~5.5% QoQ) led by ~27.6%/19.2% volume YoY growth in domestic/exports market respectively. Average selling price (~3.2% beat) grew by ~4.3%/6.2% YoY/QoQ. The YoY growth in the ASP was led by product premiumisation, higher sales of three-wheeler in the product mix and a ramp-up in electric vehicle sales. Ebitda grew by ~34.4% YoY (down ~5.5% QoQ) to Rs 2,306 crore, a ~5.1% beat versus our estimates, led by better gross margins and lower employee costs. Ebitda margins stood impressive at 20.1%, up ~80/02 bps YoY/QoQ versus our estimates of 19.6%, led by higher operating leverage absorbing the drag from the dilutive electric scooter business. Profit after tax at Rs 1,936 crore grew by ~35% YoY (down 5.2% QoQ), in line with Ebitda growth. .Outlook: We model 14.5% compound annual growth rate volume growth over FY24-26E as we expect a recovery in exports and higher domestic sales. We maintain over ~20% Ebitda margins for FY25/26E. The key risk will be the failure of actual exports to pick up from H2 FY25 onwards and the increase in raw material costs in the near term..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 - Positives Largely Factored In Rich Valuations, Maintain Hold: Axis Securities

Expect gradual recovery in exports market

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