Motilal Oswal - MOSL: AUTOMOBILES | APR-18 VOLUMES: 2a. Bajaj Auto; 2b. Ashok Leyland

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Motilal Oswal

Jinesh Gandhi

MOSL: AUTOMOBILES | APR-18 VOLUMES: 2a. Bajaj Auto; 2b. Ashok Leyland

Automobiles | APR-18 VOLUMES: 2a. Bajaj Auto; 2b. Ashok Leyland

Bajaj Auto: Dispatches at ~415k units, much ahead of estimate of ~331k; Domestic volumes up 29% YoY to 229k units; exports up 22% to 186k units

BJAUT’s Apr-18 sales increased 25.9% YoY to 415.2k units, exceeding our estimate of 330.5k units.
Domestic volumes of 229.5k units were above our estimate of 189k units. Exports at 185.7k units (highest-ever) were also above our estimate of 141.5k units. Domestic volumes grew 29% YoY, while exports rose 22% YoY.
Overall motorcycle volumes rose 18.9% YoY. Domestic motorcycle dispatches were up ~24% YoY to 200.7k units. Motorcycle exports grew ~13% YoY to 148.9k units.
3W volumes remained strong, with overall growth of 83% YoY. Domestic 3W volumes maintained the positive momentum, growing 80% YoY to 28.7k units. 3W exports grew 85% YoY to 36.8k units. This marks highest-ever 3W export monthly volumes for BJAUT.
The stock trades at 17.7x/15x FY19E/20E consol. EPS. Maintain Buy.

Ashok Leyland: Apr-18 sales of 12.7k units below estimate of 17.8k units; On a low base, MHCVs grew by 98.2% YoY and LCVs by 45% YoY

AL’s Apr-18 wholesale dispatches grew 79% YoY to 12.7k units (est. of 17.8k units), led by a low base (pre-buy impact of BS-3 to BS-4 shift).
M&HCV volumes, which account for 70.7% of total volumes, grew 98.2% YoY (-47.4% MoM) to 8.9k units (est. of 13k units).
LCVs grew 45% YoY to 3.7k units (est. of 4.8k units).
The stock trades at 22.3x/17.5x FY19E/20E EPS, and at 12.4x/9.7x EV/EBITDA. Maintain Buy.

03/05/2018 4 EN

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Analysts

Jinesh Gandhi

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MOSL: AUTOMOBILES | APR-18 VOLUMES: 2a. Bajaj Auto; 2b. Ashok Leyland

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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