Bajaj Auto Ltd. - Result Update - Emkay

Reco: BUY Bajaj Auto Ltd.
CMP: Rs 1,558
Target Price: Rs 1,920

Exports to drive performance, Maintain BUY

- Results above est. with EBITDA at Rs 10.6bn (est of Rs 10.3bn and APAT at Rs 8.4bn (our est of 8.1bn)

Momentum in exports to continue in FY13, outlook for domestic two wheelers subdued. FY13 exports hedged at a base rate of USD/INR of 47

- Lower our FY13 dom. volumes growth to ~9%YoY (vs ~13% earlier) and maintain exports at ~16%YoY in FY13. Factor in USD/INR at 49.5. Lower our FY13E EPS by ~5% to Rs 123.7

- Retain BUY, Lower our target multiple by 10% to PER/EV-EBIDTA of 15.5x/10.2x as performance will be driven by exports.

Source : Equity Bulls

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