Bajaj Auto - August 2012 Sales Update - Edelweiss

Bajaj Auto (BJAUT IN, BUY, TP: INR1,830)

- Total vehicle sales of ~345k (down 9.9% YoY, up 0.2% MoM) were below our expectation of ~360k units.

- Disappointment came from two-wheeler sales which stood at ~304 units (down 10% YoY and 1.5% MoM) versus our expectation of 324k units.

- Three-wheeler sales at ~41k units were higher than our expectation of ~36k units.

- As expected, export sales recovered 5% on sequential basis. We expect this improvement to continue further as sales in Sri Lanka normalise.

- We have a 'BUY' recommendation on the stock with a TP of INR1,830.

Source : Equity Bulls

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