Hold Bajaj Auto; target of Rs 2752: Arihant Capital
Arihant Capital’s research report on Bajaj Auto
Bajaj Auto has sold 2,48,000 units of CT 100 a growth of 40% YoY and 153,000 units of Platina a growth of 47% YoY. Platina’s growth is picking up and it has turn profitable, but CT100 is still loss making. Management expects it to turn profitable in the coming quarters. Focus will be on high margin sport segment. Pulsar brand is selling around 70,000 to 80,000 units and it is expected to reach a run rate of 90,000 Units.
We have valued the stock at PE of 16(X) to its FY20E EPS of Rs 172 and arrived at fair value of Rs 2752. We have “HOLD” rating on the stock.
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