Sharekhan Places Buy On Large Cap Bajaj Group Stock, Trading Near 52-Week High, Target Price Rs 5600

Sharekhan, a renowned broking firm, maintains a Buy on Bajaj Auto Limited (BAL) with a revised target price of Rs. 5,600, on its consistent focus on profitability and its brand focus in the premium segment. Recently the company has entered into a global iconic premium motorcycle segment with Triumph Speed 400 at an aggressive pricing of Rs 2.33 lakh in India.

The broking firm sees a potential upside of 16% in the share price from its current level considering the given target price.

Sharekhan maintain Buy with an upward revised target price of Rs 5,600/share

Sharekhan said, "BAL and Triumph have launched their coproduced Triumphs at a competitive price point, which we believe would attract a new set of customers for BAL on offering an aspirational brand at an affordable price point. In our view, initially the focus of the company would remain on stabilising the new products under a global brand in the market along with volume ramp up and hence customers acceptability at ground is the key thing to watch out in near term than volumes. We believe that an affordable product from an aspirational brand gets easy favouritism from the customers, as seen in the case Hunter 350cc from Royal Enfield. BAL has now ventured into the realm of iconic premium motorcycles, expanding its dominance from the mass premium motorcycle segment. We believe that BAL has been plugging the gaps in its portfolio and is playing with a bunch of brand portfolios in multiple segments."

It added, "A focussed approach on an individual motorcycle segment via a specific brand has been helping BAL in gaining space in premium motorcycle segment with a healthy profitability and hence despite headwinds BAL has been maintaining its EBITDA margin (above 15%) led by appropriate product mix. We continue to maintain our BUY rating on the stock with an upward revised target price of Rs 5,600 on its consistent focus on profitability and its brand focus play in premium segment."

Stock Outlook - Current Market Price, 52-Week Low/High, Returns

On Friday, the stock of Bajaj Auto ended at Rs 4,829.10/share, down 1.80% from its previous close of Rs 4917.40/share on BSE. The stock is trading 2.23% down from its 52-week high.

The stock hit an intraday high of Rs 4,910/share and an intraday low of Rs 4,824.35/share on BSE. The stock hit its 52-week high at Rs 4,936.70/share and 52-week low at Rs 3,462.05/share, respectively.

The stock surged 2.92% in 1 week. In 1 month, it surged 1.01%, while in 3 months it surged 19.74%. In 1 year, it jumped 27.01%. In 2 years, it jumped 15.34%. In 3 years, it jumped 69.61%. In 5 years, it jumped 59.73%.

About - Bajaj Auto Ltd. (BAL)

Bajaj Auto Ltd. (BAL) is a flagship company Bajaj Group that operates in the auto sector company. It is India's No.1 motorcycle exporter with two out of three bikes sold internationally carrying a Bajaj badge. The company is also the world's largest manufacturer of three-wheelers. It is a Large cap company having a market capitalisation of Rs 1,36,642.94 Crore.

Disclaimer

The stock has been picked from the brokerage report of Sharekhan. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.