Monday, 27 October 2008

Buy Bajaj Auto, target of Rs 905: Motilal Oswal

Motilal Oswal has maintained its buy rating on Bajaj Auto with a target of Rs 905 in its October 24, 2008 research report. "Revenues grew 8% to Rs 25.5 billion. Lower depreciation (by 33%) and lower tax rate (at 30.5% of PBT v/s 33.4% in 2QFY08) boosted recurring PAT to Rs 2.27 billion (5% de-growth). We are upgrading our earnings estimates by 12% to Rs 62.5 for FY09 and by 10.8% to Rs 72 for FY10 to factor in savings from the VRS at the Akrudi plant and savings in raw material cost. The stock trades at 7.4x FY09E and 6.4x FY10E EPS. We maintain Buy, target of Rs 905," says Motilal Oswal's research report.

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Source: Moneycontrol

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