Bajaj Auto Q3FY19: Overall volumes grew by 25.8% YoY; Buy

Way2wealth | Feb. 1, 2019, 12:16 p.m.


On a consolidated basis, the stock at Rs. 2553 is trading at a PE multiple of 13.8x FY20E and an EV/EBIDTA of 10.9x FY20E. Though the company has shifted focus from price led growth to volume led growth in the entry level segment, this segment constitutes only 14% of overall revenues of BAL and hence is expected to have minimal impact on BAL’s earnings. We assign FY20E PER of 16x to its consolidated earnings to arrive at a target price of Rs. 2961. We advise investors to BUYthe stock with a target price of Rs. 2961 per share.

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