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nifty 22,570.35

167.95 (0.75%)

25-Apr-2024 | EOD

sensex 74,339.44

486.50 (0.66%)

25-Apr-2024 | EOD

MOFSL 2,463.75

110.75 (4.71%)

25-Apr-2024 | EOD

Industry Update Back

Bajaj Auto: Volumes of 382.5k up 7.4

02-Nov-2017

BJAUT's Oct-17 sales at 382.5k units (in line with est. of 378k units) were higher by 7.4% YoY. Domestic volumes increased 3.5% YoY to 247.2k (est. of 232k), while exports rose 15.2% YoY to 135.3k (est. of 146k). Our overall FY18 volume estimate stands at 3.97m, asking for a residual monthly run-rate of 324.8k units.
Overall motorcycle volumes increased by 5.8% YoY. Domestic motorcycle dispatches remained flat YoY at 211.6k. Motorcycle exports grew 20.4% YoY to 114.2k units.
Management indicated improvement in sales in the months to come. As per Kevin Dsa, President - Finance "For second half, a growth of about 20 percent is on the cards primarily because the base effect comes into play in second half of the year. Platina and CT-100 have been seeing strong volume growth. Nigeria sales have picked up in October. We see exports doing healthy and we are well poised to cross our internal target which was at about 1.6 million for the year – we will see it closer to 1.7 million."
3W volumes witnessed a recovery, with overall volumes growing 17.4% YoY. Domestic 3Ws continued positive growth trajectory, clocking highest-ever dispatches of 35.7k units, growing 38.3% YoY. 3W exports declined 6.5% YoY, as the company has indicated that 3W export orders are temporarily deferred and capacity is diverted to the domestic market.
The stock trades at 22.3x/18.5x FY18/19E EPS. Maintain Buy.

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