External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

HDFC securities is the best online trading platform for stocks, IPOs, mutual fund in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>Bajaj Auto: Bajaj Auto’s Q4 PAT at INR19.4bn was ahead of our estimate of INR 17.7bn, driven by soft commodity prices and a better mix in the export markets</li><li>While BAL has posted a healthy performance in FY24, it is unlikely to sustain it, as (1) exports will take longer to revive in key markets of Africa and Latin America since they remain stressed due to inflation and fears linger due to current Red Sea crisis, (2) we expect growth rates in domestic motorcycles (and in 3Ws) to normalise in coming quarters on a high base and due to lack of adequate rainfall in FY24, (3) in 2W EVs, BAL is facing intense competitive pressure and uncertainty exists due to the upcoming general elections, (4) higher ad spending is expected due to the upcoming launches under the Pulsar brand</li><li>Given its outperformance in FY24, we raise estimates for FY25-26E marginally by 2% each.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bajaj Auto: Bajaj Auto’s Q4 PAT at INR19.4bn was ahead of our estimate of INR 17.7bn, driven by soft commodity prices and a better mix in the export marketsWhile BAL has posted a healthy performance in FY24, it is unlikely to sustain it, as (1) exports will take longer to revive in key markets of Africa and Latin America since they remain stressed due to inflation and fears linger due to current Red Sea crisis, (2) we expect growth rates in domestic motorcycles (and in 3Ws) to normalise in coming quarters on a high base and due to lack of adequate rainfall in FY24, (3) in 2W EVs, BAL is facing intense competitive pressure and uncertainty exists due to the upcoming general elections, (4) higher ad spending is expected due to the upcoming launches under the Pulsar brandGiven its outperformance in FY24, we raise estimates for FY25-26E marginally by 2% each.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bajaj Auto - Good Show but Headwinds Ahead

External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Bajaj reported a strong set of results in Q4FY24. Revenue stood largely in line with our estimates with a ~3% beat at Rs 11,178 Cr, up ~29.5% YoY (down ~5.5% QoQ) led by ~27.6%/19.2% volume YoY growth in domestic/exports market respectively.</li><li>ASP (~3.2% beat) grew by ~4.3%/6.2% YoY/QoQ. The YoY growth in the ASP was led by product premiumisation, higher sales of 3W in the product mix and a ramp-up in EV sales.</li><li>EBITDA grew by ~34.4% YoY (down ~5.5% QoQ) to Rs 2,306 Cr, a ~5.1% beat vs our estimates, led by better gross margins and lower employee costs. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bajaj reported a strong set of results in Q4FY24. Revenue stood largely in line with our estimates with a ~3% beat at Rs 11,178 Cr, up ~29.5% YoY (down ~5.5% QoQ) led by ~27.6%/19.2% volume YoY growth in domestic/exports market respectively.ASP (~3.2% beat) grew by ~4.3%/6.2% YoY/QoQ. The YoY growth in the ASP was led by product premiumisation, higher sales of 3W in the product mix and a ramp-up in EV sales.EBITDA grew by ~34.4% YoY (down ~5.5% QoQ) to Rs 2,306 Cr, a ~5.1% beat vs our estimates, led by better gross margins and lower employee costs. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bajaj Auto  - Strong Q4 Results: Positives Largely Factored in Rich Valuations

Thematic (Sector/Industry)

<ul><li>Apr’24 Wholesale Volumes: The domestic PV sales (Exhibit-2) grew by low single-digits YoY, largely led by strong SUV volumes across OEMs, which were partly offset by continued weakness in entry-level cars (in Maruti).</li><li>The 2W industry reported strong domestic volume growth of ~31%/19% YoY/MoM and export volume growth of 24% YoY (flat MoM) respectively.</li><li>The domestic CV industry sales grew by ~14% YoY (down 26% MoM). The 3W domestic wholesales for Bajaj grew by 3% while TVS/M&amp;M de-grew by 21%/1% YoY respectively.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Apr’24 Wholesale Volumes: The domestic PV sales (Exhibit-2) grew by low single-digits YoY, largely led by strong SUV volumes across OEMs, which were partly offset by continued weakness in entry-level cars (in Maruti).The 2W industry reported strong domestic volume growth of ~31%/19% YoY/MoM and export volume growth of 24% YoY (flat MoM) respectively.The domestic CV industry sales grew by ~14% YoY (down 26% MoM). The 3W domestic wholesales for Bajaj grew by 3% while TVS/M&amp;M de-grew by 21%/1% YoY respectively.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>Bajaj reported a good set of results, largely in line with our estimates.</li><li>Revenue stood marginally below our estimate by 1.2% at Rs 12,114 Cr, up 30%/12.4% YoY/QoQ led by higher sales volume (up 22%/14% YoY/QoQ).</li><li>ASP (1.5% miss) grew by 7% YoY, down 1.3% QoQ. YoY growth in the ASP was led by product premiumisation and ramp-up in EV sales. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bajaj reported a good set of results, largely in line with our estimates.Revenue stood marginally below our estimate by 1.2% at Rs 12,114 Cr, up 30%/12.4% YoY/QoQ led by higher sales volume (up 22%/14% YoY/QoQ).ASP (1.5% miss) grew by 7% YoY, down 1.3% QoQ. YoY growth in the ASP was led by product premiumisation and ramp-up in EV sales. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bajaj Auto - Another Robust Quarter; Rich Valuation Factors in Positives

<ul><li>Bajaj Auto Ltd. has approved the buyback of 40 Lc shares at a price of Rs 10,000/share for an aggregate amount not exceeding 4,000 Cr.</li><li>The buyback offer amounts to 16.33% of the aggregate paid-up share capital of the company and will be executed through a Tender route.</li><li>The small shareholder category holds 5.44% (1.53 Cr shares) of the total holding. As per the guidelines, 15% of the total buyback is reserved for the “Small Shareholders” category.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bajaj Auto Ltd. has approved the buyback of 40 Lc shares at a price of Rs 10,000/share for an aggregate amount not exceeding 4,000 Cr.The buyback offer amounts to 16.33% of the aggregate paid-up share capital of the company and will be executed through a Tender route.The small shareholder category holds 5.44% (1.53 Cr shares) of the total holding. As per the guidelines, 15% of the total buyback is reserved for the “Small Shareholders” category.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bajaj Auto Ltd-  Buyback Tender Offer; Return Potential of 5%-6.4%in 3-4 Months

India

Bajaj Auto Limited manufactures and distributes motorized two-wheeled and three-wheeled scooters, motorcycles and mopeds.

Bajaj Auto Ltd (BJAUT IN)

Bajaj Auto - Good Show but Headwinds Ahead

Bajaj Auto’s Q4 PAT at INR19.4bn was ahead of our estimate of INR 17.7bn, driven by soft commodity prices and a better mix in the export markets

HDFC Securities

Bajaj Auto - Strong Q4 Results: Positives Largely Factored in Rich Valuations

Revenue stood largely in line with our estimates with a ~3% beat at Rs 11,178 Cr, up ~29.5% YoY (down ~5.5% QoQ) led by ~27.6%/19.2% volume YoY...

Axis Direct

Auto Monthly Volume April 2024

The 2W industry reported strong domestic volume growth of ~31%/19% YoY/MoM and export volume growth of 24% YoY (flat MoM) respectively.

Axis Direct

Bajaj Auto - Another Robust Quarter; Rich Valuation Factors in Positives

Revenue stood marginally below our estimate by 1.2% at Rs 12,114 Cr, up 30%/12.4% YoY/QoQ led by higher sales volume (up 22%/14% YoY/QoQ).

Axis Direct

Bajaj Auto Ltd- Buyback Tender Offer; Return Potential of 5%-6.4%in 3-4 Months

Bajaj Auto Ltd. has approved the buyback of 40 Lc shares at a price of Rs 10,000/share for an aggregate amount not exceeding 4,000 Cr.

Axis Direct