Post on 17-Jul-2020
transcript
Bajaj Auto Ltd (BJAUT IN)
Axis Securities 22nd
April 2020
HOLD
Target Price: 2,571
Automotive | Initiating Coverage
CMP (Rs) as of (Apr 22, 2020) 2,380
Upside (%) 8%
High/Low (Rs) 3,315/1,789
Market cap (Cr) Rs 68,894
Avg. daily vol. (6m)Shrs. 561,804
No. of shares (Cr) 28.94
Axis Securities - Equity Research
IN HERE FOR THE LONG HAUL
We are initiating coverage on Bajaj Auto with a HOLD rating as
significant headwinds of COVID19 and low crude oil prices will lead
to near term pressure on BJAUT but we expectit to outpace industry
growth in the long run led by 1) Innovation in product with a dual
focus on entry and premium segment 2) Focusing on exports and
expandingto newer geographies. We expect Vol/Rev/EBITDA/PAT
CAGR of -0.5%/2%/-2%/-3% over FY20E-22E. Our HOLD rating is
based on the fact that current price provides limited upside of 8%
with a target price of Rs. 2571/share, valuing it at 16X FY22E PE
ratioand Rs 80/share for its stake in KTM.
OUR INVESTMENT THESIS IS BASED ON THE FOLLOWING PREMISES
Sharp recovery expected post near term pain in Industry volumes
2WIndustry has suffered the worst decline in decades in FY20due to economic
slowdown. We expect FY21E volumes to decline further(-15% YoY) due to
pandemic led lockdown and BSVI related price hikes affecting supply and
demand, after which we expect a sharp recovery in FY22E (+16% YoY).
Previous macro led declines in 2W segment in 1992, 2008 have seen sharp
industry rebounds of 20%+.
New launches and innovation to increase domestic market share
Bajaj Auto has gained market share in the past 2 years with a series of new
launches focused on two customer segments. 1) entry segment driven by first
time buyers and 2) premium segment driven by the overall premiumization
trend in the industry. BajajAuto has gained strong market share up from ~12.8%
in FY18 to ~17.2%in FY20E. Bajaj Auto‟s aggressive product launches,
innovations (like Electronic Fuel Injection) and lower price hike on BSVI vehicles
will further propel market share in these two segments
Navigating Export challenges will be a key monitorable
Bajaj Auto has outperformed industry in recent years with the help of exports
(FY20 volumes up 4% YoY). Exports could face medium term challenges due to
low crude oil prices as BJAUT‟s major exporting hubs are in oil driven African
nations. Bajaj Auto can offset the decline in Africa through(1) penetrating into
newer geographies (2) market share gains in ASEAN region.
ROBUST FINANCIALS TO NAVIGATE NEAR TERM CHALLENGES
BJAUT has a strong, debt free balance sheet;their cash to total fixed cost ratio
is nearly4 times and FCF yield is ~11% in FY20E. This augurs well for it to
navigate near term demand slowdown. BJAUT is currently trading at 14.7X
FY22E PE multiple which is below its long term average PE of 16.5X. We
recommend HOLD with a Target Price of Rs 2571 valuing it at 16XFY22E PE
ratioand Rs 80/share for its stake in KTM. Near term weakness in the stock
from current levels will be a good opportunity to accumulate.
KEY FINANCIALS (STANDALONE)
(Rs. Cr) FY19 FY20E FY21E FY22E Net Sales 30,250 29,397 24,086 29,638 EBITDA 4,990 4,963 3,703 4,743 EPS (Rs.) 152.2 166.0 131.8 155.7 RoE (%) 19.7 19.9 15.5 18.0 RoCE (%) 19.2 19.3 15.1 17.6 PER (x) 15.1 13.9 17.5 14.8 P/BV 3.1 2.9 2.9 2.8 EV/ EBITDA 13.2 13.2 17.9 14.0
Source: Company, Axis Research
Shareholding (%)
Dec-19 Sep-19 Jun-19
Promoter 53.52 53.52 53.52
FIIs 13.88 14.05 14.61
DII 11.1 9.79 8.57
Retail 21.5 22.64 23.3
Financial & Valuations
Y/E Mar 2020E 2021E 2022E
Net Sales 29,397 24,086 29,638
EBITDA 4,963 3,703 4,743
EPS (Rs.) 166.0 131.8 155.7
RoE (%) 19.9 15.5 18.0
RoCE (%) 19.3 15.1 17.6
PER (x) 13.9 17.5 14.8
P/BV 2.9 2.9 2.8
EV/ EBITDA 13.2 17.9 14.0
Key Drivers (%)
Y/E Mar 2019 2020E 2021E
Vol Growth (%) -8 -23 21
EBITDA Mar (%) 16.9 15.4 16.0
EPS Growth (%) 9 -21 18
Axis vs Consensus
EPS Estimates FY20E FY21E FY22E
Axis 166.0 131.8 155.7
Consensus 171.4 177.5 197.0
Mean Consensus TP: Rs 3,087
Relative performance
Source: Cline, Axis Securities
Ankit Suchanti
Research Analyst
: (022) 4267 1778
: ankit.suchanti@axissecurities.in
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Bajaj Auto Ltd
Focus Charts
Fig 1: Biggest 2W industry decline in 4 decades; pain to continue in FY21E before sharp recovery in FY22E
Fig 2: Bajaj has outperformed industry and gained market share in past 2 years
Source: SIAM, Company, Axis Securities
Fig 3: Volumes to remain under pressure owing to pandemic and crude oil challenges…
Fig 4: …leading to EBITDA margin decline in FY21E before gradual recovery
Source: SIAM, Company, Axis Securities
Fig 5: Benign commodity prices to offset margin decline partially
Fig 6: Ample cash and strong FCF yield to navigate near term challenges; much better than 2008 levels
Source: Reuters, Company, Axis Securities
Fig 7: ROCE to improve post dip in FY21E Fig 8: Trading below mean historical P/E
Source: Company, Axis Securities
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Axis Securities 3
Bajaj Auto Ltd
SHARP RECOVERY EXPECTED POST NEAR TERM PAIN IN INDUSTRY VOLUMES
2W industry demand was already under pressure due to BSVI led cost push before impact of
COVID-19 outbreak and subsequent lockdown deteriorated domestic 2W industry volumes further
in FY20 to register the worst decline (~18% YoY decline) in last4 decades. Further, we expect
volumes to get impacted i n FY21 also as COVID 19 will likely disrupt 3-6 months of sales before a
pickup resumes. To understand the industry impact we looked at China‟s volume recovery in
automobile segment post lifting of lockdown and built a scenario to quantify the impact on India.
Fig 9: China PV Volume Trend (YoY % change)
PV auto volumes in China declined ~82%
YoY driven by lockdown in Hubei province.
Post containment of the outbreak and
partial relaxation, March‟20 has seen a
sharp pickup in month-on-month
volumes
India could also have a similar spike albeit
with the help of government stimulus
Source: CAAM, Axis Securities
We built in a similar scenario for the 2W industry in India with expectation of the following scenario
playing out. April and May‟20 volumes to be impacted completely with ~90% YoY decline due to
lockdown and fear of COVID-19 and then a pick up starting from June and gradual recovery
thereafteron easing of COVID-19 cases and a second wave of the virus not commencing. Possible
aid by government such as relief on taxes, festival season and other consumption led fiscal support
will further propel sequential growth. Our volume expectations are as below (in Fig 10):
Fig 10: Industry Volume estimates assuming April and May to be near washout
Source: SIAM, Axis Securities
Further, we do not have a historical benchmark for FY22 volumes as the current decline is
unprecedented and the worst phase for 2 Win last 4 decades. But looking at declines in 1992 and
2008, we see that volume growth had seen very sharp recovery with 19%/24% volume growth in
FY94/FY95 and 26/26/14% in FY10/11/12. We therefore expect a sharp 16% recovery in volumes
in FY22 over a weak base of FY21E with upside risks as shown below.
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Bajaj Auto Ltd
Fig 11: FY22E to see sharp rebound similar to crisis of 1992 and 2008
Source: SIAM, Axis Securities
TWO PRONGED PRODUCT FOCUS TO GAIN DOMESTIC MARKET SHARE
Bajaj Auto has a clear strategy to focus on two types of customer segments in domestic
market.
1) Entry or Economy segment for first time buyers, who buy the motorcycle on factors of
cost, fuel efficiency and durability. Bajaj auto has two strong Brands “Platina” and “CT”
in this segment and has gained market share up from 12.8% in FY18 to 17.2% in
FY20on back of product interventions like CT110 and CT110H. This segment will be
driven by downtrading of vehicles from Executive to Economy due to 1) BSVI price
hikes 2) COVID led economic caution among consumers. We anticipate that the entry
segment in particular and 2W industry in general will also have a positive demand
tailwind as people recover from COVID-19 and start preferring personal transport
(changing mobility preferences) over shared and public mobility in the immediate
future.
2) Sports orPremium segment which will be driven by the overall premiumization trend in
the auto industry catering to the „millennial bikers‟ who prefer feature rich, high
performance motorcycles. Bajaj Auto is a strong player in this segment and is
represented by popular brands like Pulsar, Avenger and has global collaborations with
KTM and upcoming Husqvarna. This segment will also be the least affected by BSVI
led cost increases as price is not the focus point in this segment.
We believe these two segments will continue to grow in the 2-wheeler industry;this trend is also
evident from the shrinking executive segment (110 cc to 125 cc) overlast 5 years (refer Fig 12.).
(Economy segment in less than 110 CC and premium segment in above 125cc)
Fig 12: Executive segment market share is shrinking with Economy and Premium segment rising
Source: SIAM, Axis Securities
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Bajaj Auto Ltd
NEW PRODUCT LAUNCHES WITH INNOVATIVE FEATURES WILL HELP IN MARKET SHARE GAIN
At the start of FY19, BJAUT had announced its strategy to focus on recovering back lost
market share. Towards this, in FY19, it had launched multiple new products including several
variants of the popular Pulsar and Avenger models. Even in FY20, it has launched at least 4
new / upgraded variants, apart from its mandatory BS6 upgrades to regain market share. We
expect a similar strategy to continue going forward
Fig 13: Aggressive launches in FY19 and FY20 helped gain market share
Year Segment Models
2019
Economy Platina 100 ES and KS, CT 100 ES, Boxer 100 ES AND KS, Platina 110 ES
Executive KTM Duke 125 with ABS , CT 125 Africa, Platina 125 Max Euro III
Premium Pulsar 150, Pulsar 160 NS with Twin Disk, Avenger 160 Street with ABS, Pulsar 180 F
2020 Economy Platina 100cc, Platina H-Gear
Executive Pulsar125cc
Source: Company, Axis Securities
Bajaj Auto has developed an in-house electronic fuel injection technology, and incorporated in its
newly launched BS-VI Platina and CT100 and Pulsar 125cc which is expected to become more fuel
efficient than the old &traditional fuel injection systems. The price hike with the incorporation of this
technology in the entry segment was lower than its peers making it an attractive proposition for price
sensitive first time buyers.
Fig 14: Lower price hike for BSVI vehicles in 100CC model will drive growth in Entry segment further
Segment Company and Models BSIV Price BSVI Price Price Hike
Economy
Bajaj Platina ES 48,429 54,797 13.10%
HMCL HF Deluxe 100 cc 48,575 55,925 15.10%
TVS Star City Mono tone 53,568 61,436 14.70%
Source: Company, Axis Securities
We believe that similar innovations on fuel efficiency, price and durability will help BJAUT grow
its domestic market share in the two customer segments.
Fig 15: Strong market share gain in the Entry and Premiumsegment in last two years
Source: SIAM, Axis Securities
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Bajaj Auto Ltd
NAVIGATING EXPORT CHALLENGES WILL BE A KEY MONITORABLE
Bajaj Auto has outperformed industry in recent years with the help of strong growth in its
exports market in the past few years. In FY20, exports contributed to nearly ~47% to volumes
and >50% to EBITDA as these are high margin products for Bajaj Auto. Nearly 47% of the
exports of Bajaj Auto come from African nation which are primarily dependent on crude oil
exports led revenue. With Crude oil prices falling below $20 (from levels of $65), there would be
significant impact on exports volume for Bajaj Auto.
Fig 16: Exports to Africa would be impacted heavily if Crude oil prices remain subdued
Source: SIAM, Axis Securities
We factor in a sharp volume decline of 34% in Exports segment in FY21E as global economies
remain close and global demand recovers slowly. We then expect a recovery of 23% in FY22E
assuming the pandemic comes to a control and global demand starts picking up. The recent
record deal of OPEC+ to cut production by 9.7 million barrels per day leads us to believe that
oil will start inching upwards as demand returns.We believe exports decline would lead BJAUT
to underperform market in FY21 and also affect its EBITDA margins as it realigns its sales and
strategy.
Fig 17: Exports could see a more than 30% decline in FY21 before recovering
Source: Company, Axis Securities
Africa 47%
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Latin America 14%
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Bajaj Auto Ltd
We, however, note that challenges in exports volume, especially due to crude oil price decline
can be offset by BJAUT through (1) penetrating into newer geographies such as Malaysia and
Argentina and (2) market share gains in ASEAN region led by new product launches. As an
example to its ability to expand globally, BJAUT has expanded to 23 new countries in the last 5
years in 3W segment and can leverage that to sell 2W in some of these markets as well.
Moreover, we believe some of the exports volume will be offset by greater focus on domestic
sales in a scenario where global trade remains closed through aggressive marketing and
product innovation.
SOFT COMMODITY PRICES AND CURRENCY DEPRECIATION FAVOURABLE
Commodity Prices have come off recently to 3-5 year lows and is expected to remain subdued
in the near future. This will offset margin pressure due to negative operating leverage.
Fig 18: LME-Aluminum ($/MT) Fig: 19 LME-Copper ($/MT)
Source: Reuters, Axis Securities Fig 20: LME-Lead ($/MT) Fig 21: Steel Iron ore Fe62% AUS CIF China ($/MT)
Source: Reuters, Axis Securities
Fig 22: Recent Currency depreciation is favorable for BJAUT’s exports revenue
Source: Reuters, Axis Securities
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Bajaj Auto Ltd
ELECTRIC VEHICLE – ONLY 2W ESTABLISHED OEM TO ENTER INTO THIS MARKET
Bajaj Auto delivered the first batch of Electric vehicles in Pune and Bangalorein the 3rd
week of
March‟20under its iconic “Chetak” Brand. Feature rich and priced competitively at Rs1 lakh for
the lower end version (Urbane) andRs 1.15 lakh for Premium version, the company sold over a
100 vehicles in February‟20. While it is too earlyto comment on its EV 2W performance, we
note that Bajaj is the only established OEM to have entered directly in manufacturing electric
vehicles.
The two main deterrents for EV vehicles is cost and charging infrastructure. So, it is expected
that 2W industry which is 1) used primarily for short commutes 2) can be charged once every
night at home and 3) could also be the easiest for setting a battery swap technology is best
poised for EV adoption.
Given the aggressive fall in lithium ion batteries and continuous innovation in lowering the initial
cost, and aggressive support by Government,it is a only a matter of time before EV starts
becoming a challenger to traditional fuel vehicles and Bajaj could be a leader in this segment.
At this juncture, it just provides an optionality to Bajaj Auto‟s stock.
Fig 23: Bajaj Chetak EV, stylishly designed and competitively priced
Source: Gaadiwale.com, Axis Securities
Axis Securities 9
Bajaj Auto Ltd
VOLUME AND MARGINS TO RECOVER SHARPLYIN FY22 POST DECLINE IN FY21
There are multiple headwinds in FY21 on the cost side with BSVI transition taking place,
COVID 19 led disruptions on both demand and supply which the industry in general is facing
and BJAUT in particular is facing an additional challenge of low oil prices hitting its export
demand from crude oil revenue dependent African countries.
We see all these challenges leading to a sharp decline of ~23% (Domestic ~14% decline while
~34% decline in exports) in BJAUT volumes in FY21E at a faster pace than industry decline of
~15%. We expect revenues to decline by ~18% in FY21E as a price hike of 5-6% will happen
due to BSVI transition.
We further expect EBITDA margins to be impacted heavily due to underperformance of exports
and Bajaj‟s increased efforts to sell in domestic market in FY21E but it will partially offset by
soft commodity prices and favourable currency movement and have factored in a ~150bps
reduction in margins in FY21E to account for the same.
Having said that, we see challenges of FY21 to not spiral to FY22 and a gradual recovery
starting in Q3FY21E onwards as 1) Taking cues from China and South Korea, we expect most
countries will be able to control the pandemic spread in 3-6 months and resume economic
activity 2) Crude oil prices will start inching up as demand comes back slowly with economies
opening up and OPEC+ agreeing to production cuts 3) Possible government support to the
industry in terms of tax relief and consumption boost 4) Low base over two years of
unprecedented fall. Therefore, we have factored in a sharp recovery in FY22E with a ~23%
increase in volumes in FY22E and a margin recovery of ~60 bps.
VALUATION
BJAUT is currently trading at 14.8FY22E PE and 2.8FY22E BV which is at a discount of 11%
and 44% to its long term average of 16.5X PE and 5X P/BV ratio respectively. Moreover it‟s
strong, debt free balance sheet provides it with required cushion to fight the slowdown and
expand at a quicker pace as business resumes. We expect a steep fall in FY21 before a sharp
recovery in FY22 and consequently expectVolume/Revenues/EBITDA/PAT CAGR of -
0.5%/2%/-2%/-3%over FY20E-22E. We initiate with a HOLD rating on reasonable valuation
and limited upside with a target price of Rs2571/share which implies 8% upside from
current levels, valuing it at 16X FY22E PE ratio and Rs 80/share for its stake in KTM.
Near term weakness in the stock price would be good opportunities to accumulate Bajaj
Auto from a long term perspective.
Fig 24: Trading below mean historical P/E Fig 25: Trading well below mean historical P/BV
Source: Company, Axis Securities
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Axis Securities 10
Bajaj Auto Ltd
KEY RISKS
1) The uncertainty over the extent both in terms of time and lives of COVID-19 looms
large, on both domestic and global economies. We have currently factored in the
spread of this contagion to be restricted in this quarter and recoveries to start from late
June. Any prolonged impact than this wouldlead to downside risks.
2) Any major change in global trade channels post COVID recovery also poses structural
risks to our estimates
3) Persistence of crude oil prices below $40 in the next 2 years will lead to downside risks
to our estimate as we have factored in a sharp recovery in FY22 with OPEC+ reaching
a deal and recovery in crude oil prices
4) Commodities are expected to remain benign over the next two years and any sharp
rise in key commodity prices may cause downside risks
5) Any sharp currency appreciation of INR/USD willcausedownside risk to our estimates
Axis Securities 11
Bajaj Auto Ltd
ABOUT COMPANY
Bajaj Auto was founded in 1945 and is headquartered in Pune. The company initially
manufactured scooters with some iconic brands like Bajaj Chetak before focussing solely on
motorcycles. It is the third largest motorcycle manufacturer in India with a ~20% market share.
It is the leader in the 3- wheeler commercial and goods carrier segment with a market share of
~90%. Bajaj Auto, is ranked as the world's fourth largest three and two wheeler manufacturer
and the Bajaj brand is well-known across several countries in Latin America, Africa, Middle
East, South and South East Asia.Bajaj Auto exports to 70+ countries and a significant share of
revenues come from Exports.
Fig 26: Manufacturing details - Bajaj Auto
Source: Axis Securities
Axis Securities 12
Bajaj Auto Ltd
FINANCIALS (STANDALONE)
Profit & Loss (Rs Cr)
Y/E Mar FY19 FY20E FY21E FY22E
Net revenues 30,250 29,397 24,086 29,638
Operating expenses 25,260 24,434 20,382 24,895
EBIDTA 4,990 4,963 3,703 4,743
EBIDTA margin (%) 16.5 16.9 15.4 16.0
Other income 1,594 1,494 1,673 1,606
Interest 4.5 3.3 3.8 3.8
Depreciation 266 246 291 339
Profit Before Tax 6,703 6,207 5,082 6,006
Tax 2,028 1,406 1,270 1,501
Reported Net Profit 4,675 4,801 3,811 4,504
Net Margin (%) 15.5 16.3 15.8 15.2
Adjusted Net Profit 4,404 4,801 3,811 4,504
Net revenues 30,250 29,397 24,086 29,638
Operating expenses 25,260 24,434 20,382 24,895
EBIDTA 4,990 4,963 3,703 4,743
EBIDTA margin (%) 16.5 16.9 15.4 16.0
Other income 1,594 1,494 1,673 1,606
Interest 4.5 3.3 3.8 3.8
Depreciation 266 246 291 339
Profit Before Tax 6,703 6,207 5,082 6,006
Tax 2,028 1,406 1,270 1,501
Reported Net Profit 4,675 4,801 3,811 4,504
Net Margin (%) 15.5 16.3 15.8 15.2
Adjusted Net Profit 4,404 4,801 3,811 4,504
Source: Company, Axis Securities
Balance Sheet (Rs Cr)
Y/E Mar FY19 FY20E FY21E FY22E
Equity capital 289.4 289.4 289.4 289.4
Reserves & surplus 21,491 22,447 22,414 23,073
Shareholders’ funds 21,780 22,736 22,703 23,363
Total Loans 126 126 126 126
Deferred tax liability 543 543 543 543
Total Liabilities and Equity 22,448 23,405 23,371 24,031
Gross block 4,253 4,714 5,330 5,980
Depreciation 2,508 2,754 3,045 3,384
Net block 1,745 1,961 2,285 2,595
Capital WIP 12 50 85 85
Investments 19,215 19,515 19,815 20,115
Inventory 962 937 782 955
Debtors 2,560 2,014 1,650 2,030
Cash & Bank Bal 923 1362 503 205
Loans & Advances 1,965 2,238 2,536 2,563
Current Assets 6,409 6,550 5,471 5,753
Sundry Creditors 4,278 4,017 3,630 3,863
Other Current Liability 654 654 654 654
Current Liability& Provisions 4,932 4,671 4,284 4,517
Net current assets 1,477 1,879 1,187 1,236
Total Assets 22,448 23,405 23,371 24,031
Source: Company, Axis Securities
Axis Securities 13
Bajaj Auto Ltd
Cash Flow Statement (Rs Cr)
Y/E Mar FY19 FY20E FY21E FY22E
EBIT 4,725 4,717 3,412 4,404
Other Income 1,594 1,494 1,673 1,606
Depreciation & Amortisation 266 246 291 339
Interest paid(-) -4 -3 -4 -4
Tax paid(-) (2,028) (1,406) (1,270) (1,501)
Extra Ord Income 389 0 0 0
Operating Cash Flow 4,941 5,047 4,102 4,844
Change in Working Capital (1,306) 37 (166) (348)
Cash flow from Operations 3,635 5,083 3,936 4,496
Capex (144) (500) (650) (650)
Non Strategic Investment (1,569) (300) (300) (300)
Cash flow from Investing (1,714) (800) (950) (950)
Change in borrowing 4 0 0 0
Other 2,064.6 0 0 0
Dividends paid(-) (3,844) (3,845) (3,845) (3,845)
Cashflow from Financial Activities (1,776) (3,845) (3,845) (3,845)
Change in Cash 145 439 (858) (299)
Opening cash 778 923 1362 503
Closing cash 923 1362 503 205
Source: Company, Axis Securities
Ratios (%)
Y/E Mar FY19 FY20E FY21E FY22E
Revenue Growth 19.9 -2.8 -18.1 23.1
EBITDA Margin 16.5 16.9 15.4 16.0
Net Profit Margin 14.6 16.3 15.8 15.2
ROCE (%) 19.2 19.3 15.1 17.6
ROE (%) 19.7 19.9 15.5 18.0
EPS( Rs) 152.2 166.0 131.8 155.7
P/E (x) 15.1 13.9 17.5 14.8
P/ BV (x) 3.1 2.9 2.9 2.8
EV/ EBITDA (x) 13.2 13.2 17.9 14.0
Fixed Assets Turnover Ratio (x) 17.2 14.6 10.2 11.1
Debt / Equity (x) 0.0 0.0 0.0 0.0
EV/ Sales (x) 2.2 2.3 2.8 2.3
Source: Company, Axis Securities
Axis Securities 14
Bajaj Auto Ltd
Disclosures:
The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the
Regulations).
1. Axis Securities Ltd. (ASL) is a SEBI Registered Research Analyst having registration no. INH000000297. ASL, the Research Entity (RE) as defined in the Regulations, is engaged in the business of providing Stock broking services, Depository participant services & distribution of various financial products. ASL is a subsidiary company of Axis Bank Ltd. Axis Bank Ltd. is a listed public company and one of India‟s largest private sector bank and has its various subsidiaries engaged in businesses of Asset management, NBFC, Merchant Banking, Trusteeship, Venture Capital, Stock Broking, the details in respect of which are available on www.axisbank.com.
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Axis Securities 15
Bajaj Auto Ltd
DEFINITION OF RATINGS
Ratings Expected absolute returns over 12-18 months
BUY More than 10%
HOLD Between 10% and -10%
SELL Less than -10%
NOT RATED We have forward looking estimates for the stock but we refrain from assigning valuation and recommendation
UNDER REVIEW We will revisit our recommendation, valuation and estimates on the stock following recent events
NO STANCE We do not have any forward looking estimates, valuation or recommendation for the stock
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