Bajaj Auto is scheduled to announce its Q2 FY10 results today. The auto maker is expected to record a 16% y-o-y growth in its top-line to Rs2,842 cr, largely due to a 7.3% y-o-y growth in volumes for the quarter. Average realisation is also estimated to improve by around 8% y-o-y in Q2 FY10. A substantial decline in the raw material prices of steel and aluminum would help the operating margin improve by 592bps y-o-y to 19.4%. Thus, net profit is expected to grow by 90.6% y-o-y to Rs352.5 cr. At the CMP, the stock is trading at 15.3x its FY2011E EPS of Rs105. The stock is under review.