Arihant Capital
Bajaj Auto (Buy)
CMP: ₹3,025
Target: ₹3,220
Bajaj Auto is an India-based manufacturer of motorcycles, three-wheelers and parts. The company’s business segments include automotive, investments and others. The company’s vehicles include two-wheelers and commercial vehicles.
Bajaj Auto posted a good set of sales numbers, lead by domestic commercial vehicle sales. Domestic sales grew by 129 per cent y-o-y and the exports grew by 86 per cent y-o-y. However, if we compare on a month on month basis exports of commercial vehicles declined 13 per cent and domestic sales have declined marginally by 1 per cent. Domestic sales of commercial vehicles continue to show a good growth on back of rural focussed budget, exports will be the key going ahead. We have target of ₹3,220 on the stock.