Views on Bajaj Auto 1QFY2016 Results: Angel Broking

Views of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on Bajaj Auto 1QFY2016 Results:

"Bajaj Auto 1QFY2016 results were below estimates on the operating front. However, higher other income boosted the overall profitability and the Net Profit was marginally ahead of estimates. Bajaj Auto revenues grew 7% yoy to INR 5,613 cr which missed our expectations of INR 6,058 cr. Volumes grew 3% yoy during the quarter. However, the realization/vehicle grew only 4% yoy which is lower than our estimates of 12% growth. Adverse mix (higher proportion of entry level bikes) dragged the realization. Operating margins at 20.3% were broadly in line with our estimates. EBIDTA at INR 1,140 cr was lower than our expectations of INR 1,193 cr. However, higher other income at INR 437 cr (almost doubled yoy) lifted the overall profitability. Net Profit at INR 1,015 cr beat our expectations of INR 952 cr. We currently have NEUTRAL view on the stock and would review estimates post interaction with the management."

Shares of BAJAJ AUTO LTD. was last trading in BSE at Rs.2487.75 as compared to the previous close of Rs. 2619.1. The total number of shares traded during the day was 258336 in over 19775 trades.

The stock hit an intraday high of Rs. 2655 and intraday low of 2478.9. The net turnover during the day was Rs. 655717681.

Source : Equity Bulls

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