Views on Bajaj Auto 2QFY2016 Results: Angel Broking

Views of Mr. Bharat Gianani (Sr. Research Analyst - Automobile, Angel Broking) on Bajaj Auto 2QFY2016 Results:

"Maintaining the margin outperformance record of the two wheeler space, another two wheeler player Bajaj Auto 2QFY2016 results came in marginally ahead of estimates. Bajaj managed to improve the margins despite the volume pressures (volumes were flat yoy) and high competition in the industry. Bajaj's operating margins at 21.6% improved steeply 270 bp yoy coming 50 bp ahead of our assumptions. Soft commodity prices coupled with much higher dollar realization on exports (Bajaj realized INR 65.2/Dollar in the quarter as against INR 61.5/Dollar realized in 2QFY2015). Along with the robust operating metrics, higher other income (other income grew 34% yoy) further boosted profitability. Net Profit at INR 933 cr beat our estimates of INR 919 cr. We currently have NEUTRAL rating on the stock but would review our estimates post interaction with the management."

Shares of BAJAJ AUTO LTD. was last trading in BSE at Rs.2518.25 as compared to the previous close of Rs. 2438.3. The total number of shares traded during the day was 118573 in over 9650 trades.

The stock hit an intraday high of Rs. 2535 and intraday low of 2435. The net turnover during the day was Rs. 297066224.

Source : Equity Bulls

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