Result Update: Bajaj Auto Ltd - BUY - TP Rs.3670 - Kotak

BAL's revenue in 3QFY18 grew by 26% YoY on the back of strong demand for three wheeler, recovery in exports and lower 3QFY17 base. EBITDA in the quarter stood at Rs12.3bn, 18% growth YoY and was in line with our estimate. EBITDA margin declined YoY and QoQ on higher other expenses. Lower other income and higher tax rate impacted net profit growth that stood at 3% YoY. BAL is expected to witness healthy volume growth after almost five years. We expect volume growth for the company across domestic motorcycle, three wheeler and export segments. EBITDA margin is expected to remain broadly stable for the company. We introduce FY20E financials and roll over our target price to FY20E earnings. We retain BUY on the stock with revised price target of Rs3,670 (earlier Rs3,361).

Shares of BAJAJ AUTO LTD. was last trading in BSE at Rs.3160.5 as compared to the previous close of Rs. 3137.3. The total number of shares traded during the day was 9119 in over 582 trades.

The stock hit an intraday high of Rs. 3188.5 and intraday low of 3139. The net turnover during the day was Rs. 28817059.

Source : Equity Bulls

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