10,142.15113.05
Stock Analysis, IPO, Mutual Funds, Bonds & More

Kotak Institutional Equities upgrades Bajaj Auto to buy, lowers target price to Rs 3,100

The brokerage has upgraded the stock to buy as valuations turn attractive given strong growth prospects in export markets.

ETMarkets.com|
Last Updated: Mar 12, 2020, 08.33 AM IST
0Comments
ThinkStock Photos
Buy-sale1
Kotak Institutional Equities has upgraded Bajaj Auto to buy from reduce in the long term and revised the target price to Rs 3,100 from Rs 3,150. Shares of Bajaj Auto ended up 0.5% at Rs 2,590.70 on Wednesday while the BSE Sensex closed 62.45 points up (+0.18%) at 35,697.40.

Company Financials

For the quarter ended 31-12-2019, the company has reported consolidated sales of Rs 7436.42 crore, down -.84 % from last quarter sales of Rs 7499.21 crore and up 2.67 % from last year same quarter sales of Rs 7243.07 crore. The company has reported net profit after tax of Rs 1261.50 crore in the latest quarter.

Investment Rationale

The brokerage has upgraded the stock to buy as valuations turn attractive given strong growth prospects in export markets. The domestic motorcycle segment forms only 10% of Bajaj Auto’s Ebitda; hence impact on Bajaj Auto will be limited due to BS-VI transition, the brokerage said.

Also Read

Buy Tech Mahindra, target price Rs 630: Kotak Institutional Equities

Add Muthoot Finance, target price Rs 900: Kotak Institutional Equities

Reduce Hexaware Technologies, target price Rs 260: Kotak Institutional Equities

Buy Hindalco, target price Rs 225: Kotak Institutional Equities

Add Motherson Sumi, fair value Rs 80: Kotak Institutional Equities

Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service