Exports could help Bajaj Auto outperform peers on bourses
Bajaj Auto’s stock trades at 19 times one-year forward earnings, a slight premium to long-term average of 17 times.
Synopsis
The monthly run-rate of exports for the last 12 months is 13% higher than in FY20 despite sporadic lockdowns. In June quarter, the share of two-wheeler exports in the total volume rose to 55.3% compared with 47.9% in the previous quarter. Including three-wheelers, the export volume rose to 65%.
ET Intelligence Group: Sustained export volumes that helped partially offset a moderation in sales at home should help the stock of Bajaj Auto to outrun peers in the medium term. An increasing share of earnings from overseas should mitigate the disruptive impact of India’s increasing EV focus on the company that sells in markets as diverse as Africa and Latin America.The monthly run-rate of exports for the last 12 months is 13% higher than in
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