Bajaj Auto - Lackluster performance, Upgrade to HOLD - Emkay

- Q3FY13 operating performance was marginally below est

- Domestic demand environment continues to remain weak - we have cut our FY14/FY15E EPS est. by 6% each, as we cut our volume growth est. to 7.5%/11%

- More than two -thirds of FY14 exports hedged at a lower band of 53/$, aiding a sharp margin improvement in FY14

- Stock trading at 14.8x/13.5x FY14/15E EPS. Recommend HOLD with a TP at Rs 2,000 based on 15x FY15E EPS

- We upgrade the reco from REDUCE to HOLD, as we believe that after the recent under-performance, downside is limited

Source : Equity Bulls

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