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Bajaj Auto shares, Q2: Bajaj Auto shares after its Q2 performance revealed after market hours declined sharply by as much as 9 per cent to day's low price of Rs 10,630. The company after adjusting for the cumulative one-time impact on Deferred Tax on Investment Income, the company's profit atfer tax for Q2 period soared 9 per cent on-year to Rs 2,005 crore. Ahead of the results, the company's shares ended mildly higher by nearly 1 per cent. The company's second-quarter revenue came in at Rs 13100 crore, while the same was at Rs 10,880 crore in the same period last year. Revenue during the quarter surged to 22 per cent YoY arising from new highs on both vehicles and spares o underpinned by double digit volume growth on the back of yet another robust domestic performance and a steady recovery of exports, further buoyed by a richer sales mix. The standalone EBITDA for the review period came in at Rs 2,653 crores, growing a solid 24 per cent YoY. Largely global brokerages remain divided on the stock's outlook with Jefferies maintaining a buy, while Citi held a sell call on the stock. Remaining bullish on the 2-wheeler company, Jefferies said that that the company posted strong growth during the Q2 period with a slight miss. The company raised the target to Rs 13,400, an upside of over 15 per cent. The bullishness comes despite the muted festuve demand commentary. Furthermore, the brokerage added that exports segment of the company is recovering and adding growth avenues. On the other hand, Citi sees the stock hit Rs 7,800 levels and gives a sell call, a substantial downside of 33 per cent. As per the brokerage, the company's 2Q came below estimates due to slight miss in ASPs & gross margin. Nonetheless, the company's management expressed optimism on co’s E2Ws, CNG bike & 3W segments. A tad surprised on the outlook on festive demand, wherein management. noted that industry volumes are up only 1-2 per cent versus last year. Bajaj Auto (CMP: 11617) Brokerage Rating New Target Old Target Citi Sell 7800 7900 Jefferies Buy 13400 11630 Goldman Sachs Neutral 12000 11670 JP Morgan Overweight 12600 12500 Morgan Stanley Overweight - 11389 Macquarie Neutral 11072 11260 CLSA Underperform - 9493 Get Latest Business News , Stock Market Updates and Videos ; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Business Twitter and Facebook . Subscribe on YouTube .
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Bajaj Auto (CMP: 11617) |
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|
Brokerage |
Rating |
New Target |
Old Target |
|
Citi |
Sell |
7800 |
7900 |
|
Jefferies |
Buy |
13400 |
11630 |
|
Goldman Sachs |
Neutral |
12000 |
11670 |
|
JP Morgan |
Overweight |
12600 |
12500 |
|
Morgan Stanley |
Overweight |
- |
11389 |
|
Macquarie |
Neutral |
11072 |
11260 |
|
CLSA |
Underperform |
- |
9493 |
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