Q4FY21 Result Update - Bajaj Auto - ICICI Direct

Bajaj Auto reported a healthy operational performance in Q4FY21. Net revenues came in at Rs. 8,596 crore (up 26.1% YoY) amid 17.9% YoY volume increase at 11. 7 lakh units (2-W up 23%, 3-W down 12%) and 7.8% QoQ ASP rise to Rs. 73,492/unit. EBITDA margins for Q4FY21 came in at 17.7% (down 168 bps QoQ) with lower than anticipated decline in gross margins amid improved product mix in the 2-W segment. Consequent reported PAT was up 1.7% YoY to Rs. 1,332 crore, with BAL declaring Rs. 140/share as dividend for FY21, in line with its new dividend distribution policy.

Valuation & Outlook

For BAL, we build 22.2%, 15.5% sales, PAT CAGR in FY21P-23E. We value BAL at unchanged target price of Rs. 4,500 using SOTP method (core business at 21x FY23E EPS and 2x P/B on KTM investment), retaining our BUY rating. Despite likely slight elongation in demand recovery, presence of margin accretive factors helps us remain constructive on BAL. We are also enthused by the recent revision in dividend policy amid surplus cash on B/S at BAL.

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_BajajAuto_Q4FY21.pdf

Shares of BAJAJ AUTO LTD. was last trading in BSE at Rs.3841 as compared to the previous close of Rs. 3834.25. The total number of shares traded during the day was 50055 in over 4928 trades.

The stock hit an intraday high of Rs. 3964.25 and intraday low of 3800. The net turnover during the day was Rs. 193732316.

Source : Equity Bulls

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