Bajaj Auto shares jump 5%, hit 52 week high on BofA's commentary. Here's why!
economictimes.indiatimes.comBajaj Auto jumped over 5% to hit a 52 week high of Rs 5,395 on the NSE on Thursday as the Street cheered BofA's post earnings commentary on the stock and its upward revision of the price target. The domestic brokerages have kept a mixed view on the two-wheeler stock.
In the domestic pack, Kotak Institutional Equities recommended a Sell, while Nuvama and Motilal Oswal took a hold and neutral stance, respectively raising concerns on exports outlook.
Bajaj Auto reported a standalone net profit for the quarter ended September at Rs 1,836 crore, which was higher by 20% compared with Rs 1,530 crore reported in the same quarter last year.
Revenue from operations rose 6% year-on-year to Rs 10,777 crore in the reporting period as against Rs 10,203 crore in the corresponding period of previous year.
While the profit figure was higher than the ET Now Poll estimate of Rs 1,771 crore, revenue came in slightly below.
This is what they recommended:
BofA: Buy | Target: Rs 1,750
BofA maintains a buy Bajaj Auto shares and hiked the price target to Rs 5,950 from Rs 5,550. Calling the quarter gone by as a good one for the company, the US brokerage said that the 3W segment stands out with festive guidance remaining optimistic.
The stock has scope for valuations to get re-rated, it said further.
Kotak Equities: Sell | Target: Rs 4,500
Kotak recommended a 'Sell' stance on the scrip, saying that most positives for the company are already priced-in in the stock price. Company's 2QFY24 EBITDA was in line with Kotak's estimates, as better-than-expected gross margins were offset by lower-than-expected
realisations.
