Sell Bajaj Auto, target price Rs 3310: Edelweiss Financial Services

Edelweiss has sell call on Bajaj Auto with a target price of Rs 3310. The current market price of Bajaj Auto is Rs 3588.55. Edelweiss recommended to keep stop loss at Rs 3700.

Bajaj Auto, incorporated in the year 2007, is a Large Cap company (having a market cap of Rs 101656.64 Crore) operating in Auto sector.

Bajaj Auto key Products/Revenue Segments include Automobile - 2 & 3 Wheelers, Export Incentives, Other Operating Revenue, Royalty Income and Scrap for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 10536.56 Crore, up 26.57 % from last quarter Total Income of Rs 8324.54 Crore and up 16.04 % from last year same quarter Total Income of Rs 9080.50 Crore. Company has reported net profit after tax of Rs 1521.31 Crore in latest quarter.

The company’s top management includes Mr.Niraj Bajaj, Mr.Pradip Shah, Mrs.Lila Poonawalla, Mr.Anami Roy, Dr.Naushad Forbes, Mr.D J Balaji Rao, Mr.Shekhar Bajaj, Mr.Sanjiv Bajaj, Mr.Rakesh Sharma, Mr.Pradeep Shrivastava, Mr.Rajiv Bajaj, Mr.Madhur Bajaj, Mr.Abhinav Bindra. Company has SRBC & Co LLP as its auditors. As on 30-09-2022, the company has a total of 28 Crore shares outstanding.

Investment Rationale
Broken its previous swing low, indicating further weakness to set in.

Promoter/FII Holdings
Promoters held 54.84 per cent stake in the company as of 30-Sep-2022, while FIIs owned 11.16 per cent, DIIs 11.51 per cent.