Bajaj Corp - Disappointing quarter; or a reality check on broader demand environment - Kotak

Bajaj Corp reported a disappointing quarter with sharp deceleration in growth across parameters – volumes, revenues, EBITDA and net income. More importantly, the disappointment came in despite (1) the company growing materially ahead of peers and (2) favorable RM cost trajectory. Bajaj Corp's results, the company's small revenue base and single category presence notwithstanding, could be the start of a demand-realitycheck set of earnings for the sector. We shall revise our estimates and target price for Bajaj Corp post the earnings call. Inexpensive valuations keep us constructive.

Source : Equity Bulls

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