Bajaj Auto Limited

Bajaj Auto, the flagship company of Bajaj Group, is a two-wheeler and three-wheeler manufacturing company that exports to 79 countries across several countries in Latin America, Southeast Asia, and many more. Its headquarter is in Pune, India. It has acquired 48% of the KTM Brand which manufactures sports and super sports two-wheelers, which was 14% in 2007 when the company first acquired KTM. It is the world's fourth-largest manufacturer of motorcycles. It is also the largest manufacturer and seller of 3-wheelers globally. In FY22, the Company surpassed the 2.5 million vehicle milestone. Motorcycle exports grew by 22% and the sports motorcycle portfolio grew by 24%. It exported 200,000+ units every month in 10 out of 12 months. Exports represented 36.9% of Bajaj Auto's net sales in FY2017. It exceeded 50% to record 52.7% of net sales in FY2022. No Indian automaker comes close to this percentage.The Co.’s market share grew by ~2% point in all regions- LATAM, Africa, South Asia, and the Middle East and ASEAN.  It has three manufacturing facilities across India, 1 each at Waluj, Chakan, and Pantnagar with a total capacity of 6.6 Million Vehicle p.a in FY22, which was 6.06 Million Vehicle p.a in FY15. The Company is focusing on the EV space by intending to house all its EV-related activities such as R&D of new technologies, R&D for product development, manufacturing, sales, after-sales, and customer-centric experience to the newly formed 100% subsidiary ‘Chetak Technology Limited’.  The financials of the company looks good, RoNW is 20.2% and at CMP its looks fully priced. Price difference is around 41% and acceptance ratio as per current share holding for retail will be around 4%, so final buyback ration may be near to 15% and one may get around 5-8% on investment. So we give SUBSCRIBE rating to this buyback, those who are currently holding must participate in buyback.

• 1 Mr. Rajesh Pirogiwal
• 2 Mrs. Sunita Pirogiwal
• 3 Miss Tanvi Pirogiwal