We upgrade recommendation/ rating to ‘buy/SO’ from ‘hold/SU’ with SOTP-based revised TP of Rs 3,651 (earlier Rs 3,162), valuing the stock at 19xMarch 2021E core EPS and Rs 866 cash per share.

We are upgrading Bajaj Auto (BJAUT) to ‘buy’ as we believe it is better positioned than peers to handle the BS-VI transition as ~40% of its exports will be immune to the change and domestic 3W cargo segment will also benefit; perceptible change in the management’s approach — focusing on softer aspects of the business (sales, after sales, etc) rather than just products; and ...