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Auto numbers June 2011 – BAL and ALL
Bajaj Auto (BAL) reported in-line volume growth of 16.2% yoy and 2.2% mom to 366,657
units. Volume growth was led by 14.2% yoy and 1.5% mom growth in the motorcycle
segment and a 34.4% yoy and 7.3% mom increase in the
three-wheeler segment. Pulsar and Discover accounted for ~66% of the overall motorcycle
sales, with Discover registering 133,000 units and Pulsar reporting 81,000 units. The
three-wheeler segment recorded robust 34.4% yoy growth to 43,830 units. BAL’s exports
continue to show strong traction, reporting 24.6% yoy and 12.1% mom growth to 142,124
units.
At `1,421, the stock is trading at 14.2x FY2012E and 13.2x FY2013E earnings. We
recommend Accumulate on the stock with a target price of `1,610.
Ashok Leyland (ALL) reported better-than-expected volume growth for June 2011 with
overall sales bouncing back sequentially to report 40% growth; though, on a yoy basis,
volumes declined by 4.6% to 8,009 units. M&HCV passenger sales grew by 1.8% yoy and
30.2% sequentially to 2,244 units, while M&HCV goods sales declined by 6.3% yoy
(though up by 44.2% sequentially to 5,698 units). Exports maintained their growth
momentum, posting strong growth of 31.5% yoy and 84.3% mom to 1,185 units. At `50,
ALL is trading at 11x FY2012E and 9.9x FY2013E earnings, respectively. We recommend
Buy on the stock with a target price of `60.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Auto numbers June 2011 – BAL and ALL
Bajaj Auto (BAL) reported in-line volume growth of 16.2% yoy and 2.2% mom to 366,657
units. Volume growth was led by 14.2% yoy and 1.5% mom growth in the motorcycle
segment and a 34.4% yoy and 7.3% mom increase in the
three-wheeler segment. Pulsar and Discover accounted for ~66% of the overall motorcycle
sales, with Discover registering 133,000 units and Pulsar reporting 81,000 units. The
three-wheeler segment recorded robust 34.4% yoy growth to 43,830 units. BAL’s exports
continue to show strong traction, reporting 24.6% yoy and 12.1% mom growth to 142,124
units.
At `1,421, the stock is trading at 14.2x FY2012E and 13.2x FY2013E earnings. We
recommend Accumulate on the stock with a target price of `1,610.
Ashok Leyland (ALL) reported better-than-expected volume growth for June 2011 with
overall sales bouncing back sequentially to report 40% growth; though, on a yoy basis,
volumes declined by 4.6% to 8,009 units. M&HCV passenger sales grew by 1.8% yoy and
30.2% sequentially to 2,244 units, while M&HCV goods sales declined by 6.3% yoy
(though up by 44.2% sequentially to 5,698 units). Exports maintained their growth
momentum, posting strong growth of 31.5% yoy and 84.3% mom to 1,185 units. At `50,
ALL is trading at 11x FY2012E and 9.9x FY2013E earnings, respectively. We recommend
Buy on the stock with a target price of `60.
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