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    Buy Bajaj Auto, target price Rs 4487: Centrum Institutional Research

    Synopsis

    Centrum Institutional Research has a buy call on Bajaj Auto with a target price of Rs 4487. The current market price of Bajaj Auto is Rs 3825.8.

    bajaj-autoAgencies
    Bajaj Auto Ltd, incorporated in the year 2007, is a Large Cap company with a market cap of Rs 1,11,276.09 Crore, operating in Auto sector.
    Centrum Institutional Research has a buy call on Bajaj Auto with a target price of Rs 4487. The current market price of Bajaj Auto is Rs 3825.8.

    Bajaj Auto Ltd, incorporated in the year 2007, is a Large Cap company with a market cap of Rs 1,11,276.09 Crore, operating in Auto sector.

    Bajaj Auto's key Products/Revenue Segments include Automobile - 2 & 3 Wheelers, Export Incentives, Other Operating Revenue, Scrap for the year ending 31-Mar-2020.

    Investment Rationale
    Centrum, considering the 2nd wave impact on Q1FY22 sales, is cutting out volume estimates by 6 per cent/2 per cent for FY22/23E. It expects promotional expense to be higher in order to fuel the recovery and hence margins have been cut by 20 bps for FY22/23. Exports environment remains favorable and acts as a great hedge. Centrum reiterates its buy rating with a revised target price of Rs 4,487.

    Financials
    For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 8879.70 Crore, down 4.30 per cent from last quarter's Total Income of Rs 9279.06 Crore and up 22.59 per cent from last year same quarter's Total Income of Rs 7243.31 Crore. Company has reported a net profit after tax of Rs 1329.78 Crore in latest quarter.

    Promoter/FII Holdings
    Promoters held 53.7 per cent stake in the company as of Dec 30, 2020, while FIIs held 13.1 per cent, DIIs 9.1 per cent and public and others 24.1 per cent.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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