Emkay Research: Accumulate Bajaj Auto

Emkay Research has, in a result update, put an "Accumulate" rating on Bajaj Auto.

The report, released on July 17, said: "Bajaj's cash surplus (Rs579/share) and insurance stake value (Rs346/share) account for Rs 925. Stripped of this, BAL's auto business is still cheaply valued at 9.7x FY08E earnings of Rs164.6. Our target price, based on a 12x multiple to auto business FY08E earnings, implies a 24% upside. We recommend ACCUMULATE at current levels."

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