Friday 7 November 2008

Buy Bajaj Auto, target of Rs 535: Indiabulls Securities

Indiabulls Securities Research has upgraded its rating on Bajaj Auto to buy with a target price of Rs 535 in its November 6, 2008 research report. "For the quarter ending September, BAL reported a 9.2% yoy increase in net sales to Rs 24.5 billion, led by a higher sales volume and improved realisations. At the CMP, the stock is trading at a forward P/E of 6.9x and 6.2x for FY09E and FY10E, respectively. We have valued the Company by using the Discounted Cash Flow (DCF) method, assuming a WACC of 16.1% and a terminal growth of 5%. Our valuation suggests a target price of Rs 535, which provides an upside of 28.9% from the CMP. Thus, we have upgraded our rating to Buy," says Indiabulls Securities' research report.

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Source: Moneycontrol

Posted by Harsh at 07:41

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