{"id":511,"date":"2019-12-04T11:00:39","date_gmt":"2019-12-04T11:00:39","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=511"},"modified":"2019-12-04T11:05:44","modified_gmt":"2019-12-04T11:05:44","slug":"bajaj-auto-exports-saved-the-day-for-bajaj-auto-in-november","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2019\/12\/04\/bajaj-auto-exports-saved-the-day-for-bajaj-auto-in-november\/","title":{"rendered":"Bajaj Auto- Exports saved the day for Bajaj Auto in November."},"content":{"rendered":"\n<p><span style=\"text-decoration: underline;\">Excerpts from an interview of Mr Rakesh Sharma- ED- Bajaj Auto with CNBC- TV18<\/span><\/p>\n\n\n\n<p><strong>Update&nbsp;on the Indian Equity\nMarket:<\/strong><\/p>\n\n\n\n<p>On Tuesday, NIFTY closed 0.5% lower.\nAmong sectoral indices NIFTY PSU Bank (-2.9%), NIFTY Metal (-2.6%), and NIFTY\nMedia (-2.4%) closed lower. While NIFTY Realty (+1.3%) and NIFTY IT (+0.5%)\nclosed on a positive note. The biggest losers were Yes Bank (-7.6%), Bharti\nInfratel (-5.8%), Tata steel (-5.2%), whereas Bajaj Auto (+3.1%), Bajaj FinServ\n(+1.7%) and TCS (+1.6%) ended with gains.<\/p>\n\n\n\n<ul><li>They do not expect the sales in the month of December to hit \u00a0\u00a0\u00a0\u00a0\u00a04 lakhs because it is a seasonally weak month.<\/li><\/ul>\n\n\n\n<ul><li>Exports will continue to grow. But 3 wheelers and the domestic market will see a pullback when the model year changes.<\/li><li>The company is holding steady margins and there is no sacrifice of margins.<\/li><li>There is no need to shore up the sales in an unnatural way as    November and December follow a high season period.<\/li><li>\u00a0The mix is holding steady for the company, 3-wheeler are improving and there is a gentle tailwind on the exchange rate side. So, the margins are not going to see any shift<\/li><li>\u00a0Speaking about international markets and exports, the international performance is steady and solid and the key driver for this has been the African continent where the economies are doing well.<\/li><li>Bajaj has a competitive position in the African continent, with every 3 bikes sold one is of Bajaj.<\/li><li>\u00a0Bangladesh and the Philippines are acting as bright stars and are an important market for Bajaj.<\/li><li>These markets are doing better than industry and are in top-10 markets for the company.<\/li><li>\u00a0Speaking about price hikes post BS-VI transition, Bajaj will have to look internally and externally but certainly, the prices will increase.<\/li><li>Given the situation of the economy any kind of price increase will have  a dampening effect on the demand.<\/li><\/ul>\n\n\n\n<p>Consensus Estimate (Source: market screener)<\/p>\n\n\n\n<p>\u00b7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The closing price of\nBajaj Auto Ltd was&nbsp;\u20b9&nbsp;3261\/- as\nof 03-December-2019. It traded at 18.5x\/ 17.3x\/ 16.8x the consensus EPS for FY\n20E\/ FY 21E\/ FY 22E of&nbsp;\u20b9&nbsp;176\/ 188\/ 194 respectively.<\/p>\n\n\n\n<p>\u00b7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consensus\ntarget price of&nbsp;\u20b9&nbsp;3,069\/-\nimplies a PE multiple of 15.8x on FY22E EPS of&nbsp;\u20b9&nbsp;194\/-.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Excerpts from an interview of Mr Rakesh Sharma- ED- Bajaj Auto with CNBC- TV18 Update&nbsp;on the Indian Equity Market: On Tuesday, NIFTY closed 0.5% lower. Among sectoral indices NIFTY PSU Bank (-2.9%), NIFTY Metal (-2.6%), and NIFTY Media (-2.4%) closed lower. While NIFTY Realty (+1.3%) and NIFTY IT (+0.5%) closed on a positive note. The [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3,12],"tags":[114,44],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/511"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=511"}],"version-history":[{"count":2,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/511\/revisions"}],"predecessor-version":[{"id":513,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/511\/revisions\/513"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=511"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=511"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=511"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}