IA21: Key takeaways

Ready to electrify. BUY.
BAuto is ready to ride on the electrification growth with a line-up of EVs (Kia, Peugeot & Mazda), ready to roll out once MY unveils its EV policy (expected in Jul). It has set short & long-term targets to: (i) revive Peugeot & Kia and (ii) sell 30k units (Mazda, Kia & Peugeot). BAuto remains one of our key picks in the sector. It offers visible growth, strong management acumen, attractive dividend yields and inexpensive valuations. Our TP is pegged to 16x FY22 PER (mean valuation).