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Bajaj Auto Q2 Results Review - Worst Behind In Both Exports, India: Motilal Oswal

While the India two-wheeler business is showing signs of recovery, exports have bottomed out.

<div class="paragraphs"><p>Bajaj Auto's new Pulsar 250 NS. (Photo: BQ Prime)</p></div>
Bajaj Auto's new Pulsar 250 NS. (Photo: BQ Prime)

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. 

Motilal Oswal Report

While the India two-wheeler business is showing signs of recovery, exports have bottomed out. Bajaj Auto Ltd.'s market share would benefit over the long term from:

  1. the premiumisation trend,

  2. the opportunity in exports, and

  3. the potential sizeable position in the scooter market via electric vehicles.

However, a large part of its India profit pool (of premium motorcycle and three-wheelers) is vulnerable to a possible disruption from electrification. 

At 16.2 times/14.9 times FY23E/FY24E consolidated earnings per share, the stock’s valuation largely captures the expected recovery. Bajaj Auto’s dividend yield of 5-5.5% would support the stock.

Click on the attachment to read the full report:

Motilal Oswal Bajaj Auto Q2FY23 Results Review.pdf

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