Bajaj Auto - Apr-13 volumes - Below estimates at 344,178 - Motilal Oswal

- Bajaj Auto's Apr-13 total volumes declined by 10% (+14.3% MoM) to 344,178 (v/s est of 365,000). Sequential jump in volumes is partially due to bookings of 20k units of March exports in April.

- Domestic volume were flat at 213,849 (+7% MoM), whereas exports declined by 22.9% YoY (+28.6% MoM) to 130,329 units.

- Overall motorcycle volumes declined 12.1% YoY (+12.7% MoM) to 300,827 (v/s est 320,000). Domestic motorcycle volumes were flat YoY at ~200,000 units.

- Bajaj expects May-13 to be a relatively better month, however June would again see some softness.

- Three-wheeler sales for Apr-13 grew 10.4% YoY (+26.8% MoM) to 43,351 (v/s est 45,000).

- For Bajaj, we factor in volume growth of 8.6% in motorcycles in FY14 (+5.2% domestic, +14.5% exports) and ~9.6% in 3Ws (+7% domestic, +12% in exports).

- The stock trades at 15.5x/13.0x FY14E/FY15E EPS of INR123.5/142.7 respectively. Maintain Buy.

Source : Equity Bulls

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