Bajaj Auto - Domestic motorcycle volumes in 2HFY14 could be better than 1HFY14 - Kotak

Bajaj Auto's volumes in FY14 so far have been weak. Going ahead though, domestic 2W volumes could receive boost from the upcoming festive season, new launches and good monsoons. New permits should help improve 3W volumes in the near to medium term. On the export side, the company is entering new markets. On the back of these reasons, we expect volumes to improve from the current levels. Weakness in INR has emerged as a strong positive for the company and we expect this to provide comfort to the stock in the near term. Given adequate upside from the current levels, we upgrade the stock to BUY with an unchanged price target of Rs2,126.

Source : Equity Bulls

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