Buy Bajaj Auto: target of Rs 4800: Sharekhan

Sharekhan is bullish on Bajaj Auto has recommended buy rating on the stock with a target price of Rs 4800 in its research report dated December 22, 2021.

“India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business,” JM Financial research report.

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Sharekhan’s research report on Bajaj Auto

BAL’s management remained positive on the growth prospects, especially exports, where BAL expects to gain market share key markets, driven by brand recall, product launches, enhanced distribution network and value for money proposition. BAL is expected to benefit from the growth in the premium bikes segment, which is expected to recover, aided by the premiumization trend, new launches and easing chips shortage situation. Stock trades at comfortable valuation of 13.9x P/E and 8.8x EV/EBITDA of FY23E estimates.

Outlook

We maintain our Buy rating on Bajaj Auto Limited (BAL) with an unchanged of Rs. 4,800, factoring strong business outlook and comfortable valuations.

For all recommendations report, click here

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