ICICIdirect has recommended 'Buy' on Bajaj Auto with target price of Rs 2,833 with current market price (CMP) of Rs 2,473 in its report.

Commenting on the investment rationale, ICICIdirect said, ''The Bajaj Auto (BAL) management met investors to give an insight into future strategies on product, marketing side coupled with financials. They remain focused on to the idea of 'supplying a reason to buy' for the customer and not become commoditised like competition

BAL is one of the few Indian manufacturing OEMs with a global presence/market share coupled with global R&D standards along with quality management in the automotive space. It remains a decent play among peers considering the stability & quality of earnings coupled with possibility of upsides on success in domestic motorcycle.

We believe BAL's earnings trajectory will remain strong with a CAGR of 17% in FY14-17E and remains a low-risk, high RoCE business. We value BAL on an SOTP basis, valuing the core business at 15x FY17E EPS and investment in KTM to arrive at a target price of Rs 2833. We have a Buy rating as we believe the risk-reward remains favourable for the stock.''

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.