Please refer to important disclosures at the end of this report
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.
CMP `3130
52 Week High / Low
Avg. Daily Volume
Market Cap (` cr)
BSE Sensex
Face Value (`)
Reuters Code
Vaibhav Agrawal
022 3935 7800 Ext: 6808
[email protected]gelbroking.com
Bajaj Auto Ltd
Others | Auto
Oct 05, 2017
Bajaj Auto Ltd |Auto
Oct 5, 2017
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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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)