Bajaj Auto will be following three-fold strategies to gain market share in the domestic two wheeler market

Chirag Batavia • 17 August 2021

Bajaj Auto: BUY

Dated: 17 th August 2021

CMP: Rs.3760

Fair Value: Rs.4650

Potential Upside: 24.0%
Market Cap: Rs.1,11,408 Cr
Time Frame: 12 months


  • We believe the company is well-placed to gain from rising exports, increase in market share in the premium motorcycle segment through exciting launches and incremental volumes by expanding in the electric scooter segment.

  • The company will be following three-fold strategies to gain market share in the domestic two wheeler market – (1) aggressive product launches in 125cc segment, (2) retaining dominant position in sports motorcycle segment (>250cc segment) and (3) providing innovative offerings in top-end of the entry motorcycle segment.

  • Bajaj Auto has gained 230 bps market share on a qoq basis in the domestic motorcycle segment in Q1FY22.

  • The company highlighted the export segment maintaining its momentum, which augurs well for them. We expect company’s export volume mix (in total volumes) to improve to ~56% in FY24E from 52% in FY21.

  • Bajaj Auto’s total volumes are expected to grow at 14% CAGR over FY21-24E. We expect Bajaj Auto’s earnings to grow at 18% CAGR over FY21-24E. (CAGR - compound annual growth rate)

  • Our fair value of Rs4,650 is based on the discounted cash flow (DCF) methodology.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 22 nd July 2021, which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental .       Disclaimer: http://bit.ly/2n5AxIE


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Home First (HFFC) reported 24% earnings growth, with 19% net interest income growth in Q2FY25

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