3QFY2016 Result Update | Automobile
February 15, 2016
Bajaj Auto
ACCUMULATE
CMP
`2,303
Performance Highlights
Target Price
`2,585
Y/E March (` cr)
3QFY16
3QFY15 % chg (yoy)
2QFY16 % chg (qoq)
Investment Period
12 Months
Net Sales
5,565
5,657
(1.6)
6,098
(8.7)
EBITDA
1,171
1,227
(4.5)
1,317
(11.1)
Stock Info
EBITDA Margin (%)
21.0
21.7
(70 bp)
21.6
(60 bp)
Sector
Automobile
Adj. net profit
901
861
4.7
933
(3.4)
Market Cap (` cr)
66,640
Source: Company, Angel Research
Net Debt (` cr)
(9,628)
Results in line with estimates: Bajaj Auto Ltd (BAL)’s 3QFY2016 results have come
Beta
0.9
in in line with our estimates. The company’s revenues expectedly declined by 2%
52 Week High / Low
2,690/1,914
yoy to `5,565cr. The decline in revenues was on account of a 3% drop in
Avg. Daily Volume
12,772
volumes. Domestic volumes grew in double digits (10%) led by new product
launches (Avenger and Pulsar variants) which led to market share gains.
Face Value (`)
10
However, export volumes fell steeply by 16% yoy led by demand slowdown in
BSE Sensex
22,986
Africa and Egypt markets due to slide in crude oil prices. Realisation/vehicle grew
Nifty
6,981
2% yoy led by favourable currency movement (INR depreciation as against the
Reuters Code
BAJA.BO
USD). The company realized about INR 66/USD in 3QFY2016 as against INR
Bloomberg Code
[email protected]
63/USD realized in 3QFY2015. The company’s operating margin declined
marginally by 70bp yoy to 21% (coming broadly in line with our estimates of
21.5%). Lower export mix and price cuts in African market to stimulate demand
Shareholding Pattern (%)
led to the dip in margins on a yoy basis. The operating profit at `1,171cr was in
Promoters
49.3
line with our estimate of `1,181cr. Other income more than doubled yoy to
MF / Banks / Indian Fls
16.4
`200cr, coming in higher than our expectation of `165cr. The Net Profit at
FII / NRIs / OCBs
18.1
`901cr was broadly in line with our expectations of `873cr.
Indian Public / Others
16.2
Outlook and valuation: The domestic motorcycle industry is likely to recover from
FY2017 given the higher income levels, implementation of Seventh pay
commission and improvement in rural sentiments on expectations of a normal
Abs. (%)
3m 1yr 3yr
monsoon. Also, BAL is likely to outperform the industry with new launches
Sensex
(11.1)
(16.0)
17.5
scheduled in both the commuter and the sport segments. However, key export
Bajaj Auto
(6.0)
(8.7)
11.0
markets viz Africa and Middle East (which contribute 70% of export and 35% of
overall volumes) are likely to remain under pressure in the near term given the
slide in crude oil prices and consequently adverse balance of payments in those
3-year price chart
markets. We have marginally reduced our earnings estimates given the pressure
2,800
in the exports. We retain our “Accumulate” rating on the stock with a revised price
2,400
target of `2,585 based on 18x FY2017E earnings.
Key financials (Standalone)
2,000
Y/E March (` cr)
FY2014
FY2015 FY2016E
FY2017E
1,600
Net Sales
20,150
21,612
22,709
25,860
% chg
0.8
7.3
5.1
13.9
1,200
Net Profit
3,242
3,101
3,731
4,153
% chg
6.5
(4.4)
20.3
11.3
EBITDA (%)
20.4
19.0
20.9
20.1
Source: Company, Angel Research
EPS (`)
112.1
107.2
129.0
143.6
P/E (x)
20.5
21.5
17.8
16.0
P/BV (x)
7.1
6.4
5.5
4.7
RoE (%)
34.8
27.0
30.7
29.4
RoCE (%)
46.8
40.3
42.8
40.7
Bharat Gianani
EV/Sales (x)
2.9
2.7
2.5
2.1
022-3935 7800 Ext: 6817
EV/EBITDA (x)
14.3
14.1
12.0
10.6
[email protected]
Source: Company, Angel Research; Note: CMP as of February 12, 2016
Please refer to important disclosures at the end of this report
1
Bajaj Auto | 3QFY2016 Result Update
Exhibit 1: Quarterly financial performance (Standalone)
Y/E March (` cr)
3QFY16
3QFY15
% chg (yoy)
2QFY16
% chg (qoq) 9MFY16 9MFY15
% chg (yoy)
Total operating income
5,565
5,657
(1.6)
6,098
(8.7)
17,276
16,873
2.4
Raw material consumption
3,696
3,862
(4.3)
4,055
(8.9)
11,524
11,652
(1.1)
% of total operating income
66.4
68.3
66.5
66.7
69.1
Employee expense
230
214
7.6
242
(4.8)
716
639
12.1
% of total operating income
4.1
3.8
4.0
4.1
3.8
Other expenditure
468
354
31.9
484
(3.4)
1,409
1,303
8.1
% of total operating income
8.4
6.3
7.9
8.2
7.7
Total expenditure
4,394
4,430
(0.8)
4,781
(8.1)
13,648
13,594
0.4
% of total operating income
79.0
78.3
78.4
79.0
80.6
EBIDTA
1,171
1,227
(4.5)
1,317
(11.1)
3,628
3,279
10.7
EBITDA margin (%)
21.0
21.7
21.6
21.0
19.4
Depreciation
75
66
13.5
78
(4.3)
231
204
13.5
EBIT
1,296
1,256
3.2
1,392
(6.9)
4,186
3,503
19.5
Other Income
200
95
109.6
153
30.8
789
428
84.3
Net Interest exp (inc)
0
0
-
0
(74.1)
0
0
82.6
Profit before tax (PBT)
1,296
1,256
3.2
1,391
(6.8)
4,186
3,503
19.5
Taxes
395
395
(0.1)
458
(13.9)
1,336
971
37.7
% of PBT
30.5
31.4
32.9
31.9
27.7
Profit after tax (PAT)
901
861
4.7
933
(3.4)
2,849
2,192
30.0
Extraordinary income/(expense)
-
-
-
(242)
Adjusted PAT
901
861
4.7
933
(3.4)
2,849
2,434
17.1
Equity capital
289.4
289.4
289.4
289.4
289.4
Reported EPS (`)
31.2
29.8
4.7
32.2
(3.4)
98.5
75.8
30.0
Adjusted EPS (`)
31.2
29.8
4.7
32.3
(3.4)
98.5
84.2
17.1
Source: Company, Angel Research
Exhibit 2: 3QFY2016 - Actual vs Angel estimates
Y/E March (` cr)
Actual
Estimates
Variation (%)
Net Sales
5,565
5,491
1.3
EBITDA
1,171
1,181
(0.8)
EBITDA margin (%)
21.0
21.5
(50 bp)
Adjusted PAT
901
873
3.2
Source: Company, Angel Research
February 15, 2016
2
Bajaj Auto | 3QFY2016 Result Update
Exhibit 3: Quarterly volume performance
Y/E March
3QFY16
3QFY15
% chg (yoy) 2QFY16
% chg (qoq) 9MFY2016 9MFY2015
% chg (yoy)
Motorcycles (Domestic)
475,027
438,849
8.2
469,330
1.2
1,430,175
1,391,341
2.8
Motorcycles (Exports)
352,374
406,255
(13.3)
433,767
(18.8)
1,175,558
1,227,774
(4.3)
Total Motorcycles
827,401
845,104
(2.1)
903,097
(8.4)
2,605,733
2,619,115
(0.5)
Three wheeler (Domestic)
66,034
55,257
19.5
67,117
(1.6)
183,866
185,717
(1.0)
Three wheeler (Exports)
58,063
84,159
(31.0)
86,382
(32.8)
231,524
223,700
3.5
Total Three wheeler
124,097
139,416
(11.0)
153,499
(19.2)
415,390
409,417
1.5
Overall Domestic
541,061
494,106
9.5
536,447
0.9
1,614,041
1,577,058
2.3
Overall Exports
410,437
490,414
(16.3)
520,149
(21.1)
1,407,082
1,451,474
(3.1)
Total volumes
951,498
984,520
(3.4)
1,056,596
(9.9)
3,021,123
3,028,532
(0.2)
Source: Company, Angel Research
BAL’s motorcycle volumes continue to remain sluggish with the company
reporting a marginal decline of 2% during 3QFY2016. In the domestic
market, BAL continued to gain market share in a sluggish industry scenario,
reporting a healthy volume growth of 8% on back of new launches. In the
export markets, sales declined by double digits impacted by weak demand in
Nigeria and Middle East countries owing to lack of USD availability due to
sharp decline in crude oil prices which have severely impacted the balance of
payment of these nations.
Realisation/vehicle grew 2% yoy to `58,486, mainly due to higher export
realization and implementation of price hikes. Contribution/vehicle improved
8% yoy due to soft commodity prices and favourable currency movement.
Exhibit 4: 2W volumes remain sluggish
Exhibit 5: Realisation and contribution/vehicle trend
40
70,000
25,000
60,000
30
20,000
20
50,000
15,000
10
40,000
0
30,000
10,000
(10)
20,000
5,000
(20)
10,000
(30)
0
0
2W Dom grwth (%)
2W Exp grwth (%)
2W Total grwth (%)
Realisation/vehicle (`)
Contribution/vehicle (`)
Source: SIAM, Angel Research
Source: Company, Angel Research
BAL’s market share in the motorcycle segment remained stable at ~18% in
3QFY2016. However, its overall two-wheeler market share declined
marginally owing to its absence in the fast growing scooter segment.
Export realization continued to improve, given the favourable INR/USD
movement. BAL realized INR65.5/USD in 3QFY2016 as against INR62.8/USD
accrued in 3QFY2015.
February 15, 2016
3
Bajaj Auto | 3QFY2016 Result Update
Exhibit 6: Domestic market continues to improve
Exhibit 7: Export Realisation trend
25
22.6
68
65.5
65.2
20.3
63.9
18.9
18.5
65
17.7
17.9
17.7
17.9
62.8
62.8
20
16.4
16.3
16.6
61.5
15.2
60.9
60.9
14.4
62
60.2
59.9
13.4
15
12.8
12.4
12.2
11.0
11.0
11.3
11.5
9.8
59
55.6
10
56
5
53
0
50
Motorcycle Market share (%)
Two wheeler market share (%)
Export Realisation (INR/USD)
Source: SIAM, Angel Research
Source: Company, Angel Research
BAL’s operating margin at 21% for the quarter was in line with our estimates.
Soft commodity prices coupled with higher export realization boosted margins.
Given the in line operating performance, the Adj Net Profit at `902cr met our
estimates.
Exhibit 8: Operating margin in line with estimates
Exhibit 9: Adj PAT broadly in line with expectations
1,400
25
1,200
20
1,200
1,000
22
18
1,000
800
19
16
800
600
600
16
14
400
400
13
12
200
200
0
10
0
10
EBIDTA (` cr)
EBIDTA Margin %
PAT (` cr)
PAT Margin %
Source: Company, Angel Research
Source: Company, Angel Research
February 15, 2016
4
Bajaj Auto | 3QFY2016 Result Update
Conference call - Key highlights
Bajaj Auto continues to see improvement in domestic motorcycle market share.
The share has gone up from 16.9% in 9MFY15 to 17.8% in 9MFY16. Success
of new launches CT100 in the entry segment coupled with new variants in the
Avenger, Pulsar has enabled company to regain market share.
In a bid to gain market share further, BAL will launch 150 cc motorcycle “V”. V
is aimed at the existing executive segment users and would have initial
production capacity of 20,000 units per month. The bike would be launched
in the month of March 2016. BAL is aiming to reach exit market share of 22%
in the motorcycle segment.
BAL is facing sales pressure in the key export markets of Africa and Middle
East (which contribute about 65% of the overall export volumes) in view of the
slide in the crude prices and consequent depreciation of the local currency.
BAL estimates the headwinds to continue in the near term and has lowered the
FY2016 export volume guidance from 2 million units to 1.83 million units.
BAL continues to get higher export realization given the depreciation of INR as
against USD. During 3QFY2016, BAL realized INR 65.5/USD and expects to
realize INR67/USD for 4QFY2016. BAL stated it would realize a minimum rate
of INR67/USD on FY2017 exports revenues.
BAL started dispatches of “Qute” quadricycle in the export markets of Turkey
and Nigeria from December 2015. BAL would initially tap the export markets
as the launch in the domestic markets is awaiting Supreme Court judgement.
BAL has production capacity of 5,000/month for the quadricycles.
BAL also plans to reenter the three wheeler cargo segment from the month of
March 2016. As per the management it aims to sell about 1,500/month of the
three wheeler goods vehicle.
BAL realized benefits of lower commodity prices in 3QFY2016. As per the
management, the commodity prices would continue to remain soft in the near
term and expects further benefit of lower raw material prices in 4QFY2016.
The spare part revenues (constituting % of revenues) continue to be strong for
BAL. BAL witnessed 12% yoy growth in spare revenues in 9MFY2016.
February 15, 2016
5
Bajaj Auto | 3QFY2016 Result Update
Investment arguments
Demand recovery, new launches key to domestic growth: BAL’s domestic
motorcycle performance had been severely impacted during FY2014-2015
period due to slowdown in demand and increasing competition, leading to
poor volumes (down ~15% yoy) and erosion in market share (down ~800bp
to 16.5%). We attribute this to the disappointing performance of the flagship
brand, Discover whose monthly run rate has dropped by 25-30%. We expect
new launches across segments (commuter, executive and premium) to provide
stability to domestic volumes going ahead and gradually help the company to
consolidate its market share. Also, we expect demand in the premium
motorcycle segment to accelerate in FY2016/17 on expected recovery in
urban demand and expect BAL to be the key beneficiary of this trend. Thus, we
expect domestic motorcycle volumes to grow at a CAGR of 10% over the next
two years.
Exports provide huge opportunity: BJAUT registered a strong exports CAGR of
~11% during FY2011-15. The opportunity for exports is huge in the long run
and we expect Bajaj to return to double digit growth once the crude price
stabilizes and demand resumes in the African and Middle East markets. We
expect growth to be driven by market share gains in Africa and Latin America
at the expense of Chinese players who currently dominate these regions with a
market share of ~70%. BAL, with the first mover advantage, wide-spread
reach with an established distribution network and a strong brand presence in
the major markets of Africa and Latin America is well poised to capitalize on
the growth opportunity.
Three-wheelers registering healthy growth; quadricycles provide additional
growth opportunity: BAL has a strong presence in the three-wheeler market,
with an overall market share (including exports) of ~55%. The three-wheeler
segment fetches higher margins than the company’s two-wheeler business.
The outlook for three-wheelers remains strong (we expect 7% CAGR over the
next two years) backed by healthy demand in both the domestic as well as
export markets. Further, the recent launch of quadricycle (RE60) would provide
an additional growth opportunity.
Outlook and valuation
The domestic motorcycle industry is likely to recover from FY2017 given the higher
income levels, implementation of Seventh pay commission and improvement in
rural sentiments on expectations of a normal monsoon. Also, BAL is likely to
outperform the industry with new launches scheduled in both the commuter and
the sport segments. However, key export markets viz Africa and Middle East (which
contribute 70% of export and 35% of overall volumes) are likely to remain under
pressure in the near term given the slide in crude oil prices and consequently
adverse balance of payments in those markets. We have marginally reduced our
earnings estimates given the pressure in the exports. We retain our “Accumulate”
rating on the stock with a revised price target of `2,585 based on 18x FY2017E
earnings.
February 15, 2016
6
Bajaj Auto | 3QFY2016 Result Update
Exhibit 10: Key assumptions - Volumes
Y/E March (` cr)
FY2012
FY2013
FY2014
FY2015
FY2016E
FY2017E
Motorcycles (Domestic)
2,566,757
2,463,863
2,099,230
1,770,778
1,910,175
2,121,000
Motorcycles (Exports)
1,267,648
1,293,231
1,323,173
1,521,306
1,505,558
1,665,000
Total Motorcycles
3,834,405
3,757,094
3,422,403
3,292,084
3,415,733
3,786,000
Three wheeler (Domestic)
202,979
226,131
186,856
234,345
243,719
255,905
Three wheeler (Exports)
312,176
253,926
260,762
284,772
283,671
274,095
Total Three wheeler
515,155
480,057
447,618
519,117
527,390
530,000
Quadricycles
-
7,000
50,000
Total volumes
4,349,560
4,237,151
3,870,021
3,811,201
3,950,123
4,366,000
% chg
13.7
(2.6)
(8.7)
(1.5)
3.6
10.5
Source: Company, Angel Research
Company background
Bajaj Auto (BJAUT) is the third largest 2W manufacturer in the country (~18%
market share) and a market leader in the 3W segment (~45% market share).
BJAUT has three manufacturing facilities in India, located at Waluj, Chakan and
Pantnagar, with a total installed capacity (2W - 4.8mn and 3W - 0.6mn) of 5.4mn
units. BJAUT also happens to be one of India's largest auto exporters, with exports
forming ~50% of revenue in FY2015. The two dominant brands, Discover and
Pulsar, account for ~65% of the company’s motorcycle volumes.
February 15, 2016
7
Bajaj Auto | 3QFY2016 Result Update
Profit and loss statement (Standalone)
Y/E March (` cr)
FY2012
FY2013
FY2014
FY2015
FY2016E
FY2017E
Total operating income
19,529
19,997
20,150
21,612
22,709
25,860
% chg
19.1
2.4
0.8
7.3
5.1
13.9
Total expenditure
15,809
16,362
16,044
17,495
17,955
20,649
Net raw material costs
14,103
14,407
13,877
14,850
15,168
17,457
Other mfg costs
327
382
434
485
535
585
Employee expenses
540
639
727
897
941
1,084
Other
839
934
1,007
1,263
1,311
1,524
EBITDA
3,720
3,635
4,106
4,117
4,754
5,210
% chg
17.3
(2.3)
12.9
0.3
15.5
9.6
(% of total op. income)
19.0
18.2
20.4
19.0
20.9
20.1
Depreciation & amortization
146
164
180
267
306
324
EBIT
3,574
3,471
4,633
4,432
5,437
5,976
% chg
17.3
(2.9)
8.6
(4.3)
22.7
9.9
(% of total op. income)
18.3
17.4
23.0
20.5
23.9
23.1
Interest and other charges
22
1
0
6
1
1
Other income
608
795
706
582
989
1,090
Recurring PBT
4,160
4,266
4,632
4,425
5,437
5,975
% chg
14.8
2.5
8.6
(4.5)
22.9
9.9
Extraordinary income/(exp.)
(134)
-
0
(340.3)
0
0
PBT (reported)
4,026
4,266
4,632
4,085
5,437
5,975
Tax
1,022
1,223
1,362
1,271
1,705
1,823
(% of PBT)
25.4
28.7
29.4
28.7
31.4
30.5
PAT (reported)
3,004
3,044
3,242
2,814
3,731
4,153
ADJ. PAT
3,138
3,044
3,242
3,101
3,731
4,153
% chg
20.0
(3.0)
6.5
(4.4)
20.3
11.3
(% of total op. income)
16.1
15.2
16.1
13.0
16.4
16.1
Basic EPS (`)
103.8
105.2
112.1
107.2
129.0
143.6
Adj. EPS (`)
108.4
105.2
112.1
107.2
129.0
143.6
% chg
20.0
(3.0)
6.5
(4.4)
20.3
11.3
February 15, 2016
8
Bajaj Auto | 3QFY2016 Result Update
Balance sheet statement (Standalone)
Y/E March (` cr)
FY2012 FY2013 FY2014 FY2015
FY2016E
FY2017E
SOURCES OF FUNDS
Equity share capital
289
289
289
289
289
289
Reserves & surplus
5,752
7,613
9,319
10,787
12,170
14,136
Shareholders’ funds
6,041
7,902
9,608
11,076
12,459
14,425
Total loans
97
71
145
145
112
112
Deferred tax liability
48
115
143
143
142
142
Other long term liabilities
157
122
-
-
Long term provisions
112
135
121
120
120
130
Total Liabilities
6,456
8,345
10,017
11,485
12,832
14,809
APPLICATION OF FUNDS
Gross block
3,396
3,829
4,077
4,427
4,451
4,801
Less: Acc. depreciation
1,914
2,024
2,071
2,338
2,490
2,814
Net Block
1,482
1,804
2,006
2,089
1,961
1,987
Capital work-in-progress
42
294
144
150
150
150
Investments
4,883
6,430
8,550
9,000
10,000
11,000
Long term loans and adv.
601
462
720
970
511
611
Other noncurrent assets
1
1
1
1
1
1
Current assets
4,076
3,487
3,327
3,243
4,061
4,148
Cash
1,654
559
495
292
611
460
Loans & advances
1,025
1,312
978
969
1,438
1,527
Other
1,397
1,616
1,853
1,983
2,012
2,160
Current liabilities
4,628
4,134
4,730
3,968
3,852
3,088
Net current assets
(553)
(647)
(1,403)
(725)
209
1,059
Misc. exp. not written off
-
-
-
-
Total Assets
6,456
8,345
10,017
11,485
12,832
14,809
Note: Cash and bank balance includes term deposits with banks
February 15, 2016
9
Bajaj Auto | 3QFY2016 Result Update
Cash flow statement (Standalone)
Y/E March (` cr)
FY2012 FY2013 FY2014 FY2015 FY2016E FY2017E
Profit before tax
4,026
4,266
4,632
4,372
5,437
5,975
Depreciation
146
164
47
267
306
324
Change in working capital
332
(521)
693
(882)
(936)
(1,001)
Direct taxes paid
(1,148)
(1,239)
(1,390)
(1,271)
(1,705)
(1,823)
Less: Others
(162)
(535)
(87)
(251)
(21)
(90)
Cash Flow from Operations
3,193
2,134
3,894
2,235
3,081
3,386
(Inc.)/Dec. in fixed assets
(338)
(488)
(99)
(356)
(245)
(350)
(Inc.)/Dec. in investments
(94)
(1,353)
(2,119)
(450)
(847)
(1,000)
Others
(250)
563
Cash Flow from Investing
(682)
(1,278)
(2,218)
(806)
(1,092)
(1,350)
Issue of equity
-
-
-
-
Inc./(Dec.) in loans
(158)
-
(48)
-
-
-
Dividend paid (Incl. Tax)
(1,154)
(1,300)
(1,692)
(1,633)
(1,965)
(2,187)
Others
(252)
(179)
-
-
Cash Flow from Financing
(1,564)
(1,479)
(1,740)
(1,633)
(1,965)
(2,187)
Inc./(Dec.) in cash
947
(622)
(63)
(204)
24
(151)
Opening Cash balances
229
1,176
559
495
586
611
Closing Cash balances
1,176
553
495
292
611
460
Note: Closing Cash balances excludes term deposits with banks
February 15, 2016
10
Bajaj Auto | 3QFY2016 Result Update
Key ratios
Y/E March
FY2012
FY2013
FY2014
FY2015
FY2016E
FY2017E
Valuation Ratio (x)
P/E (on FDEPS)
21.2
21.9
20.5
21.5
17.8
16.0
P/CEPS
20.3
20.8
19.5
21.6
16.5
14.9
P/BV
11.0
8.7
7.1
6.4
5.5
4.7
Dividend yield (%)
2.0
2.0
2.2
2.1
2.5
2.8
EV/Sales
3.3
3.0
2.9
2.7
2.5
2.1
EV/EBITDA
17.5
16.7
14.3
14.1
12.0
10.6
EV / Total Assets
10.1
7.3
5.9
5.2
4.5
3.7
Per Share Data (`)
EPS (Basic)
108.4
105.2
112.1
107.2
129.0
143.6
EPS (fully diluted)
108.4
105.2
112.1
107.2
129.0
143.6
Cash EPS
113.5
110.9
118.3
106.5
139.5
154.7
DPS
45.0
45.0
50.0
48.2
58.1
64.6
Book Value
208.8
263.2
322.2
359.7
420.8
488.8
Returns (%)
ROCE (Pre-tax)
59.5
52.0
46.8
40.3
42.8
40.7
Angel ROIC (Pre-tax)
72.6
54.8
49.1
42.2
44.5
41.7
ROE
57.3
40.0
34.8
27.0
30.7
29.4
Turnover ratios (x)
Asset Turnover (Gross Block)
5.8
5.2
4.9
5.3
5.1
5.4
Inventory / Sales (days)
11
12
12
14
13
12
Receivables (days)
7
14
14
12
13
13
Payables (days)
43
46
52
43
46
44
WC cycle (ex-cash) (days)
(35)
(20)
(26)
(17)
(20)
(19)
Solvency ratios (x)
Net debt to equity
(1.1)
(0.9)
(0.9)
(0.9)
(0.8)
(0.8)
Net debt to EBITDA
(1.7)
(1.9)
(2.2)
(2.3)
(2.2)
(2.2)
Interest Coverage (EBIT / Int.)
160.7
7,901.4
9,454.2
682.8
8,770.2
5,976.5
February 15, 2016
11
Bajaj Auto | 3QFY2016 Result Update
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
DISCLAIMER
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.
Angel Broking Pvt. Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document are those of the analyst, and the company may or may not subscribe to all the views expressed within.
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.
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 endeavours 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.
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redistributed or passed on, directly or indirectly.
Angel Broking Pvt. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking
or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or
in the past.
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or in connection with the use of this information.
Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may
have investment positions in the stocks recommended in this report.
Disclosure of Interest Statement
Bajaj Auto
1. Analyst ownership of the stock
No
2. Angel and its Group companies ownership of the stock
No
3. Angel and its Group companies' Directors ownership of the stock
No
4. Broking relationship with company covered
No
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors
Ratings (Returns):
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
Reduce (-5% to -15%)
Sell (< -15%)
February 15, 2016
12