Bajaj Auto registers lower-than-expected sales in March 2014 - Angel Broking

Bajaj Auto (BJAUT) reported lower-than-expected sales in March 2014, with total sales posting a marginal growth of 1% yoy to 304,330 units. The company's sales underperformed its peers like Hero MotoCorp and TVS Motor Company which reported strong growth of 11.9% and 16.2% yoy respectively. The domestic sales of the company disappointed once again, despite the new launches, and witnessed a decline of 6.9% yoy. We believe that weakness in Discover volumes coupled with higher competition in the entry and executive motorcycle segments continue to impact the company's performance. While motorcycle sales of the company grew by 1.3% yoy; three-wheeler sales registered a fall of 1.3% yoy during the month. Export volumes though continued its strong traction witnessing a robust growth of 16.6% yoy driven by continued momentum in Africa.

At the current price, the stock is trading at 13.8x FY2016E earnings. We maintain our Buy rating on the stock with a target price of Rs. 2,455.

Shares of BAJAJ AUTO LTD. was last trading in BSE at Rs.2045.35 as compared to the previous close of Rs. 2049.4. The total number of shares traded during the day was 13871 in over 1173 trades.

The stock hit an intraday high of Rs. 2070.25 and intraday low of 2025. The net turnover during the day was Rs. 28400234.

Source : Equity Bulls

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