SEBI Reg. Investment Advisor

Download App
Help Center Pricing
Money Works 4 Me Logo MoneyWorks4Me
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up

INVESTMENT INSIGHTS

Check Before You Invest : Bajaj Auto Ltd

BSE: 532977 NSE: BAJAJ-AUTO ISIN: INE917I01010
  |   Sector:  Automobiles   |   Industry:  Automobile Two & Three Wheelers

Snapshot

Q.1 Which industry/sub-sector does Bajaj Auto Ltd belong to?
Bajaj Auto Ltd belongs to the Automobiles sector, operating specifically within the Automobile Two & Three Wheelers segment.
Q.2 Is Bajaj Auto Ltd a good quality company?
Bajaj Auto Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Bajaj Auto Ltd undervalued or overvalued?
Bajaj Auto Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Bajaj Auto Ltd a good buy now?
Bajaj Auto Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Bajaj Auto Ltd?
Bajaj Auto Ltd revenue growth is 13.7% for FY-2025 , which is above its 5 year CAGR of 11.3% , indicating faster growth.
Q.2 Gross Profit margin of Bajaj Auto Ltd?
Bajaj Auto Ltd Gross profit margin which is the profit after deduction of direct costs, is 22.5% for FY-2025 , which is above its 5 year median of 22.3% , indicating increasing margins.
Q.3 Operating Profit Margin of Bajaj Auto Ltd?
Bajaj Auto Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 20.55% for FY-2025 , which is above its 5 year median of 17.86% indicating increasing margins.
Q.4 Net Profit Margin of Bajaj Auto Ltd?
Bajaj Auto Ltd Net Profit Margin is 14.36% for FY-2025 , is below with its 5 year median of 17.18%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 22.5 22.3
Operating Profit Margin 20.55 17.86
Net Profit Margin 14.36 17.18
Q.5 Return on Asset of Bajaj Auto Ltd?
Bajaj Auto Ltd Return on Asset is 15.67(x), which is below its 5 year historical median of 17.25(x), indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Bajaj Auto Ltd?
Bajaj Auto Ltd Return on equity is 22.91% for FY-2025 , which is above its historical median of 21.6%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Bajaj Auto Ltd?
Bajaj Auto Ltd Return on capital employed is 28.14% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Bajaj Auto Ltd?
Bajaj Auto Ltd Cash conversion cycle is -27 , below its historical median of -18 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.1 1.05
ROE 22.91 21.6
ROCE 28.14 26.7
Cash Conversion Cycle -27 -18
Q.9 Debt to Equity ratio of Bajaj Auto Ltd?
Bajaj Auto Ltd Debt-to-Equity ratio is 0.27 , which is above with the industry average of 0.14 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Bajaj Auto Ltd?
Bajaj Auto Ltd Debt to cash flow from operations is -6.65 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Bajaj Auto Ltd?
Promoters hold 54.99% of the Bajaj Auto Ltd, with 0.01% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Bajaj Auto Ltd vs industry peers?
Bajaj Auto Ltd revenue CAGR is 11.25% , compared to the industry median CAGR of 14.21% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 50,994.6 31,416.7
Gross Profit 11,473.9 5,766.1
Operating Profit 10,463 4,946.5
Net Profit 7,325 4,540
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.1 1.53
ROE 22.91 24.31
ROCE 28.14 27.94
Cash Conversion Cycle -26.62 -19

Valuation & price assessment

Q.1 Stock return of Bajaj Auto Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 14.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 14.3% 22.2% 31.8% 26.3%
Q.3 Valuation ratios of Bajaj Auto Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 30.87 19.19 30.61
Price to Book 7.43 3.98 3.72
Price to Sales 4.94 3.60 3.29
EV to EBITDA 20.01 15.09 19.81

Check more companies

1. Bajaj Auto
2. Eicher Motors
3. TVS Motor
4. Hero MotoCorp
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×