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Bajaj Auto Ltd. (BAJA.BO)
Research Tactical Idea
We believe the share price will rise relative to the country index over the next 60 days.
We have upgraded our rating on the stock to OW (please see "Consumption Play with Valuation Support, Move to OW",
also published today, for more details). Our recent Alphawise survey of corporates points to strong wage growth which
should benefit consumption; also the uncertain macro backdrop makes Bajaj more attractive given better visibility and
high quality of earnings. We expect the stock to outperform the market in the coming month as the company targets 400k
units next month, which implies 21% YoY growth as it launches a new bike “Boxer”.
We estimate that there is about a 70% to 80% or "very likely" probability for the scenario.
Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the
scenario.
Stock Rating: Overweight
Industry View: In-Line
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Bajaj Auto Ltd. (BAJA.BO)
Research Tactical Idea
We believe the share price will rise relative to the country index over the next 60 days.
We have upgraded our rating on the stock to OW (please see "Consumption Play with Valuation Support, Move to OW",
also published today, for more details). Our recent Alphawise survey of corporates points to strong wage growth which
should benefit consumption; also the uncertain macro backdrop makes Bajaj more attractive given better visibility and
high quality of earnings. We expect the stock to outperform the market in the coming month as the company targets 400k
units next month, which implies 21% YoY growth as it launches a new bike “Boxer”.
We estimate that there is about a 70% to 80% or "very likely" probability for the scenario.
Estimated probabilities are illustrative and assigned subjectively based on our assessment of the likelihood of the
scenario.
Stock Rating: Overweight
Industry View: In-Line
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