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Bajaj Auto Ltd. Stock Analysis

Large Cap
Evaluated by 8780 users | BSE: 532977 | NSE: BAJAJ-AUTO |
Automobile Two & Three Wheelers
Bajaj Auto is a $2.3 billion company founded in 1926. It is world’s fourth largest two- and three-wheeler manufacturer. Bajaj Auto has three plants in all, two at Waluj and Chakan in Maharashtra and one plant at Pant Nagar in Uttaranchal. The company is into manufacturing of...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Bajaj Auto Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 60.06%53.13%42.71%37.18%29.59%32.03%25.43%21.94%21.14%22.93%
Value Creation Index 3.623.052.261.841.261.440.940.670.610.75
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 16,42919,59520,04220,15821,61422,58721,76725,21930,35829,919
Y-o-Y Gr. Rt.-19.3%2.3%0.6%7.2%4.5%-3.6%15.9%20.4%-1.5%
Adjusted EPS (Rs.) 95.76104106.34118.24109.44140.27141.1146.04160.26178.78
Y-o-Y Gr. Rt.-8.6%2.3%11.2%-7.4%28.2%0.6%3.5%9.7%11.6%
Book Value per Share (Rs.) 166.13210.17278.72351.36383.43484.51617.08705.85802.91748.59
Adjusted Net Profit 2,7713,0093,0773,4223,1674,0594,0834,2264,6375,173
Net Op. Cash Flow (Rs. Cr.) 1,6393,2462,2183,5022,1143,6903,2674,3282,4873,850
Debt to Cash Flow from Ops 0.210.050.050.020.050.030.040.030.050.03
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Bajaj Auto Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 6.9%6.7%11.2%-1.5%
Adjusted EPS 7.2%10.3%8.2%11.6%
Book Value per Share 18.214.36.7-6.8
Share Price 5.8% 2.5% -4% -11.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 73.6655.2743.537.5329.7932.3225.6222.0821.2423.05
Operating Profit Margin (%) 19.2518.8117.9320.8619.3121.2220.3519.2117.1217.08
Net Profit Margin (%) 16.7315.0814.9316.2513.6616.9917.5915.6214.1216.22
Debt to Equity 0.070.020.010.010.010.010.010.010.010.01
Working Capital Days 75515560595356525461
Cash Conversion Cycle -29-25-23-23-17-17-20-22-17-14
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 53.69%
Institutions 23.97%
Non-Institutions 22.34%
Pledged *0.000.000.000.000.000.000.000.000.000.01
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Bajaj Auto Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Bajaj Auto Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Bajaj Auto Ltd.'s performance infers:

Bajaj Auto Ltd. earnings have grown by 10.3%, whereas share price has appreciated 2.5% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Bajaj Auto Ltd. share prices over the last 10 years. Here is what we found out:

Bajaj Auto Ltd. share price has appreciated 6.7% annually over the past ten years.

Bajaj Auto is a $2.3 billion company founded in 1926. It is world’s fourth largest two- and three-wheeler manufacturer. Bajaj Auto has three plants in all, two at Waluj and Chakan in Maharashtra and one plant at Pant Nagar in Uttaranchal.

The company is into manufacturing of motorcycles, scooters and three-wheelers. In India, Bajaj Auto has a distribution network of 485 dealers and over 1,600 authorised services centres. It has 171 exclusive dealers for the three-wheeler segment

Bajaj Auto is a $2.3 billion company founded in 1926. It is world’s fourth largest two- and three-wheeler manufacturer. Bajaj Auto has three plants in all, two at Waluj and Chakan in Maharashtra and one plant at Pant Nagar in Uttaranchal.

The company is into manufacturing of motorcycles, scooters and three-wheelers. In India, Bajaj Auto has a distribution network of 485 dealers and over 1,600 authorised services centres. It has 171 exclusive dealers for the three-wheeler segment .It has total 3750 rural outlets in rural areas.

The Bajaj brand is well-known across several countries in Latin America, Africa, Middle East, South and South East Asia. It has a distribution network in 50 countries with a dominant presence in Sri Lanka, Colombia, Bangladesh, Mexico, Central America, Peru and Egypt.

It has technical tie up with Kawasaki Heavy Industries of Japan to manufacture latest models in the two-wheeler space.

Bajaj Auto has launched brands like Boxer, Caliber, Wind125, Pulsar and many more. It has also launched India's first real cruiser bike, Kawasaki Bajaj Eliminator.

Bajaj Auto's has in all three plants, two at Waluj and Chakan in Maharashtra and one plant at Pant Nagar in Uttranchal, western India.

  • Waluj - Bajaj range of motorcycles and three-wheelers
  • Chakan - Bajaj range of motorcycles
  • Pant Nagar - Bajaj range of motorcycles

Achievement

  • 1945- On November 29 Bajaj Auto came into existence as Bachraj Trading Corporation Private Limited.
  • 1948- The company commenced sales in India by importing two- and three-wheelers.
  • 1959- Bajaj Auto obtained the licence from the Government of India to manufacture two- and three-wheelers.
  • 1960- The company became a public limited company and conducted Bhoomi Poojan of the Akurdi Plant.
  • 1970- Bajaj Auto rolled out its 100,000th vehicle.
  • 1971- The company introduced its three-wheeler goods carrier.
  • 1972- The company introduced Bajaj Chetak.
  • 1975- Bajaj Auto & Maharashtra Scooters entered into a joint venture.
  • 1976- The company introduced Bajaj Super.
  • 1977- Bajaj Auto introduced rear engine autorickshaw and achieved production and sales of 100,000 vehicles in a single financial year.
  • 1981- Bajaj Auto launched Bajaj M-50.
  • 1984- On January 19, the foundation stone laid for the new plant at Waluj, Aurangabad.
  • 1985- On November 5, the Waluj plant inaugurated by the erstwhile President of India, Giani Zail Singh. The company commenced production at Waluj, Aurangabad in a record time of 16 months.
  • 1986- The Bajaj M-80 and the Kawasaki Bajaj KB100 motorcycles were introduced. The company produced and sold 500,000 vehicles in a single financial year.
  • 1990- The Bajaj Sunny was introduced.
  • 1991- The company introduced Kawasaki Bajaj 4S Champion.
  • 1994- It launched Bajaj Classic.
  • 1995- On November 29, Bajaj Auto turned into a 50-year old company. It signed agreements with Kubota of Japan for the development of diesel engines for three-wheelers and with Tokyo R&D for ungeared scooter and moped development. The Bajaj Super Excel is introduced while Bajaj celebrated its ten millionth vehicle. The same year one million vehicles were produced and sold by company in that financial year.
  • 1997- The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw are introduced.
  • 1998- The company commenced production at Chakan plant. It rolled out Kawasaki Bajaj Caliber from its Waluj plant. Bajaj Auto launched Legend, India's first four-stroke scooter from Akurdi plant. The same year Spirit was launched.
  • 1999- Caliber motorcycle notched up 100,000 sales in record time of 12 months.
  • 2000- The company launched Bajaj Saffire.
  • 2001- Bajaj Auto launched its latest offering in the premium bike segment 'Pulsar'. The same year Eliminator was launched.
  • 2003- Bajaj Pulsar DTS-i was launched. The company sold 107,115 motorcycles in a month. The company launched Bajaj Wind 125, The World Bike in India. It launched its Caliber115 'Hoodibabaa!' in the executive motorcycle segment.
  • 2004- Bajaj Discover DTS-I, new Bajaj Chetak 4-stroke with wonder gear and Bajaj CT100 were launched. Bajaj unveiled new brand identity, new symbol, logo and brandline.
  • 2005- Bajaj Discover, Bajaj Avenger DTS-I and Bajaj Wave DTS-I were introduced.
  • 2006- Bajaj Platina was launched.
  • 2007- RE GDi autorickshaw, Bajaj XCD 125 DTS-Si, Bajaj Pulsar 220 DTS-Fi, 200 cc Pulsar DTS-I and Bajaj Kristal DTS-i were launched. The company also underwent through revamping of its organisational structure.
  • 2008- Bajaj Platina 125 DTS-Si was launched.
  • 2009- Bajaj Pulsar 150 & 180 upgrade and Bajaj XCD 135 DTS-Si were launched
  • 2010 - Bajaj Auto launched a 135 cc Pulsar, priced at Rs 51,000, pushing the Pulsar brand into the mass segment.
  • 2011- April, Bajaj Records its best year ever of 2010.
  • 2011-Bajaj Auto ties-up with SBI for inventory finance to dealers
    2012 -Bajaj Auto tied up with Japan’s Kawasaki in Indonesia

Awards

  • Bajaj Auto was awarded the NDTV Profit Business Leadership Award 2010 at the hands of the Hon'ble Finance Minister Shri Pranab Mukherjee on 1st September 2010.
  • Bajaj Auto’s Bajaj Pulsar DTS-Fi won bike of the year in 2007 by CNBC-TV18 Autocar Auto Awards.
  • Bajaj Platina 100 cc won bike of the year 2007 by NDTV Profit Bike India.
  • Bajaj Auto’s Chakan Plant won Super Platinum Award For manufacturing Excellence in 2006-07 by Frost and Sullivan.
  • Bajaj CT 100 bagged Motorcycle Total Customer Satisfaction Study in 2005 by TNS Automotive.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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