Bajaj Auto - 4QFY2013 Result Preview - Angel Broking

Bajaj Auto (BJAUT) is scheduled to announce its 4QFY2013 results today. We expect the revenues to register a modest growth of ~3% yoy to Rs. 4,784cr primarily due to a ~4% yoy decline in volumes following slowdown in the domestic twowheeler industry. However, we expect the net average realization to grow by ~7% yoy led by favorable foreign exchange rate on the exports front and also due to price hike in export markets to pass on the impact of reduction in export incentives. On the operating front, EBITDA margin is expected to decline 120bp yoy to 18.6% largely led by weaker product-mix. As a result, the bottom-line is expected to decline by ~3% yoy to Rs. 732cr. At the CMP of Rs. 1,822, the stock is trading at 13.6x FY2015E earnings.

Currently, we have an Accumulate rating on the stock.

Source : Equity Bulls

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