1
Please refer to important disclosures at the end of this report
1
1
Bajaj Auto Limited (BAL) is manufacturer of motorcycles, three-wheelers and
parts. BAL’s domestic volumes grew 5.4% in FY17, outpacing industry growth of
~3.7%. This was mainly on account of new launches like the Dominar, V series &
Avengers. Bajaj Auto (BAL) & Triumph Motorcycles UK recently announced their
global partnership to deliver mid capacity motorcycles (250cc-650cc) for the
Indian & global markets which is an underpenetrated segment globally. In 3W,
BAL has already reduced its dependence on Sri-Lanka by increasing exports to
Bangladesh, Peru etc. Going ahead, the management expects a monthly run rate
of ~20,000+ units in domestic 3W due to removal of restriction on new permits
in Maharashtra, ~10,000 new permits in Delhi & proposed replacement of 2
stroke 3-W with 4-stroke 3-W in Bangalore. In FY18, BAL expects total KTM sales
from India at 1.1 lakh units, of which ~50,000 units will be sold in India. BAL
has been maintaining a healthy dividend payout of 43.80%. It has reported a
revenue & bottom-line growth of 6% CAGR respectively over FY2012-17.
Further, the company is virtually debt free and has always maintained healthy
cash flows (~`3000cr since FY2012). BAL has been maintaining return on equity
(ROE) track record for last 3 Years at 28.65%. Hence Buy.
BUY
CMP `3130
52 Week High / Low
3208.4/2510
Avg. Daily Volume
19,239
Auto
Market Cap (` cr)
90,595
10
BSE Sensex
31,592
Nifty
9,889
Face Value (`)
Reuters Code
BAJA.NS
BJAUT:IN
0.8
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Bajaj Auto Ltd
Others | Auto
Oct 05, 2017
2
Bajaj Auto Ltd |Auto
Oct 5, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
DISCLAIMER
Angel Broking Private Limited (hereinafter referred to as Angel”) is a registered Member of National Stock Exchange of India Limited,
Bombay Stock Exchange Limited and Metropolitan Stock Exchange Limited. It is also registered as a Depository Participant with CDSL
and Portfolio Manager and investment advisor with SEBI. It also has registration with AMFI as a Mutual Fund Distributor. Angel Broking
Private Limited is a registered entity with SEBI for Research Analyst in terms of SEBI (Research Analyst) Regulations, 2014 vide
registration number INH000000164. Angel or its associates has not been debarred/ suspended by SEBI or any other regulatory
authority for accessing /dealing in securities Market. Angel or its associates/analyst has not received any compensation / managed or
co-managed public offering of securities of the company covered by Analyst during the past twelve months.
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals. Investors are advised to refer the Fundamental and Technical Research Reports available on our website to evaluate the
contrary view, if any.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavors to update on a reasonable basis the information discussed in this material, there may be
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
Disclosure of Interest Statement Bajaj Auto
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)