Bajaj Auto - Diversified Business Model With Sound Balance Sheet; Exports Recovery Impending: Axis Securities

Axis Securities Report

Bajaj Auto Ltd.’s focus on the 125cc+ segment is in line with the changing industry dynamics, where the share of commuter motorcycles is declining (~60% of total domestic sales in FY16, coming down to 50% in FY23).

Bajaj Auto through its exclusive dealership networks for KTM, Bajaj Motorcycles, Chetak Electric, and three-wheelers offers differentiated customer experience and preserves brand .

The recent Triumph launch will also be marketed through the exclusive Triumph network, and we expect it to plug the gap in the portfolio.

Bajaj Auto has robust domestic IC engine franchise, however, export pickup, and establishing market share through successful electric vehicle-two-wheeler/three-wheeler launches will be the key monitorable for the stock.

We maintain our 'Buy' rating on the stock and continue to the stock using 17 times price/earning on core June-25E earnings per share plus Pierer Mobility AG stake and cash reserves at one time book .

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.