Egypt government has lifted the ban on imports of two-wheelers and three-wheelers into the country which was in effect since February 2014. This move is expected to benefit Bajaj Auto (BJAUT) as it is one of the biggest exporters of two-wheelers and three-wheelers to Egypt, aaccording to Angel Broking.

The company intends to resume its shipments to Egypt from June with deliveries of 5,500 and 3,500 units of three wheelers and two-wheelers respectively.

While the management was hopeful of resuming shipments from October, the lifting of the ban from June itself is positive for the company. We expect the three-wheeler exports to pick-up post the lifting of the ban and now expect three-wheelers exports to grow by 8% in FY2015 from 2% expected earlier. Our expectations for two-wheeler exports too have been revised marginally upwards.

Commenting on the investment rationale, the Angel Broking said, "We believe that the lifting of the ban is positive for the company given that it will boost overall exports growth and enable to company to offset the derperformance which it is witnessing in the domestic markets. We maintain our positive view on the company. We retain our Buy rating on the stock with a target price of Rs 2,318.''