Bajaj Auto Q1 Results Review - Miss On Ebitda Margin Largely Led By Unfavorable Mix: Motilal Oswal
Triumph-order book at 17,000 units; aims to hit a run-rate of 5,000 units/month by September 2023.
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Motilal Oswal Report
Bajaj Auto Ltd. posted lower Ebitda margin (-30 basis points QoQ) at 19.0% (versus estimate: 19.5%) due to unfavorable mix as the share of commuter segment rose during the marriage season in Q1 FY24.
Despite volume recovery and stable raw material, we project Bajaj Auto's Ebitda margin to remain rangebound over next few quarters due to weak mix-driven ramp-up in Chetak volumes and recovery in exports.
We maintain our FY24E earnings per share while marginally upgrade our FY25E EPS by 2.6% to factor in higher other income.
We reiterate our 'Neutral' rating with a target price of Rs 5,150 (based on 16 times September-25E consolidated EPS).
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