Ranvir’s Portfolio

Bajaj Auto –

Q1 outcomes –

Revenues – 11932 vs 10312 cr, up 3 pc
EBITDA – 2370 vs 1932 cr, up 22 pc ( margins @ 20 vs 19 pc. 20 pc EBITDA margins are very healthy levels for an auto OEM )
PAT – 1942 vs 1644 cr, up 18 pc

Sale of spare parts now constitute 11 pc of company’s revenues

EBITDA margins are in excess of 20 pc despite growing 2W EV sales which hardly breakeven on EBITDA levels

Asian, ME and LATAM mkts continue to report strong growth. African mkts continue to demonstrate significant weakness – although not as bad as Q4 LY. Company expects the export business in Q2 to be better than Q1

Company’s mkt share in the 150 CC plus bikes in India is now at a solid 40 pc ( mostly led by Pulsars ). Pulsar 400 has current bookings of > 2000 units

Company’s mkt share in the 100-125 cc segment is 15 pc. The launch of their CNG bike – Freedom 125 can potentially boost their mkt share in this segment over time. This is a 5 lakh bikes / month kind of segment ( basically the biggest segment. With 50 pc savings on the running costs, CNG driven Freedom 125 is actually a unique and innovative product

Freedom 125’s success hinges on expansion of CNG pumps. Initially launching it in Maharashtra, Gujarat. Next will be a Delhi NCR launch. Current capacity for this bike is 10k/month – going to take it to 40k/month by Q4

Company’s mkt share in ICE 3 Wheelers @ 78 pc !!!

In EV- 3 Wheelers, company’s mkt share jumped to 26 pc vs 17 pc in Q4 FY 24 – a huge jump !!!

Chetak is now 3rd largest selling EV – 2W in the country. Have also launched a sub 1 lakh variant of the Chetak which should further help them ramp up volumes. It’s being currently sold through 250 retail stores. Company aims to expand this to 1000 retail stores within the CY 24

Triumph branded bikes ( under Bajaj-Triumph JV ) are now available across 100 stores in India. Triumph volumes are currently in the range of 5k / month ( 2.5 k each in domestic and export mkts )

Contribution of EVs – 3W + 2W to the domestic sales is now at 14 pc

Cash on books @ 16700 cr

Bajaj Auto credit ( fully owned subsidiary – NBFC ) aims to cover 100 pc of company’s stores by end of FY 25. This should also start aiding company’s overall profitability in medium term

Company sells around 30k 3Ws / month out of which about 3k are EV 3Ws / month

Disc: initiated a tracking position, will be keenly watching out the performance of Freedom, Chetak and Exports, biased, not SEBi registered, not a buy/sell recc