Bajaj Auto: Encouraging outlook says HDFC Securities, Maintain BUY with Rs 4250 target price
Bajaj Auto’s Q3 FY21 PAT (+24/37% YoY/QoQ) beat was driven by strong profitability (EBITDA margin came in at 19.4%, +150/170bps YoY/QoQ). HDFC Securities have recently upgraded Bajaj Auto to a BUY on the back of a firming recovery. Bajaj Auto’s management expects double-digit growth in FY22 in the domestic 2W market while export demand will remain healthy, driven by low-system inventories.
Bajaj Auto revenue grew 17/25%. EBITDA margin at 19.4% came in at a multi-quarter high (+150/170bps) owing to a rich product mix and cost controls: Reuters