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Wednesday, 27 July 2016

Bajaj Auto Ltd Q1:Buy

Short sellers may be trapped
Stock has bn pulled down from 2800 level as rumours in mkt that co vl report lower Sales and Lower Ebidta ( 1175cr). However denofwealth estimates:

Sales to be 5980cr vs Bloomberg est 5950cr and ETBrokerage est 5960cr

Ebidta Margin: Should be 20.9percent as against vs ETBrokerage 20.5percent and Bloomberg 21percent

Con PAT can be 1034cr vs 803cr for Q4/FY16

Other Income: Q1FY16 PAT of 1014cr had Other Income of Rs 437cr. Other Income in Q1/FY17 to be significantly lower. Motilal Oswal est of Other Income 326cr. Actual Other Income to be lower than MOSL est as well

We feel stock should go up.

SL you decide. WhatsApp msg circulating in mkt (ebidta 1175cr) should prove wrong

Our buy calls of yday on Maruti @4500 and Sell on DrReddy @ 3470 gvg big big profit.

 B Auto should also

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