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Bajaj Holdings & Investment Ltd. Stock Analysis

Large Cap
Evaluated by 2343 users | BSE: 500490 | NSE: BAJAJHLDNG |
Finance - NBFC

Bajaj Holdings & Investment (BHIL) - erstwhile Bajaj Auto (BAL) - was de-merged as per the Bombay High Court order dated 18 December 2007. The company is essentially a holding and investment company focusing on earnings income through dividend,...

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 Holdings & Investment Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Operating Income (Rs. Cr.)1,0756487528029721,3958809499992,164
Y-o-Y Gr. Rt.--39.7%16.1%6.6%21.2%43.4%-36.9%7.8%5.2%116.7%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
89.8650.9959.665.977.97114.1648.3671.8870.82164.15
Y-o-Y Gr. Rt.--43.3%16.9%10.6%18.3%46.4%-57.6%48.6%-1.5%131.8%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
413.62435.66466.06496.87535.8610.84659.2918.48987.46960.78
Y-o-Y Gr. Rt.-5.3%7%6.6%7.8%14%7.9%39.3%7.5%-2.7%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%): Colour Rating Guide
  • >1.25 : Very Good
  • 1-1.25 : Somewhat Good
  • <1: Not Good
Net Profit/Total Funds (%)14.4610.9312.1712.6713.9618.937.499.147.516.77
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 Holdings & Investment Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Operating Income8.1%17.4%35%116.7%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
6.9%16.1%50.3%131.8%
Book Value per Share
9.8%12.4%13.4%-2.7%
Share Price 17.9% 12.5% 2.6% -11.3%
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Asset Quality Ratio
To view Asset Quality Ratio Colour Rating Guide click here
Asset Quality Ratio: Colour Rating Guide
  • <0.5 : Very Good
  • 0.5-1 : Somewhat Good
  • >1 : Not Good
Net NPA to Net Advances (%)0000000000
Capitalization Ratio
To view Capitalization Ratio Colour Rating Guide click here
Capitalization Ratio: Colour Rating Guide
  • >17% : Very Good
  • 15%-17% : Somewhat Good
  • <15% : Not Good
Capital Adequacy Ratio (%)16412310910513300000
Margins
Net Profit Margin (%) 93.0787.5888.1891.4589.2591.1161.1284.2878.9284.43
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15 : Very Good
  • 12-15 : Somewhat Good
  • <12 : Not Good
Return on Equity (%) 23.7512.0113.2213.6915.119.917.629.117.4316.85
Entity Percentage Holding
Promoters 49.94%
Institutions 17.86%
Non-Institutions 32.20%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

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

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

The 5-year analysis of Bajaj Holdings & Investment Ltd.'s performance infers:

Bajaj Holdings & Investment Ltd. earnings have grown by 16.1%, whereas share price has appreciated 12.5% 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 Holdings & Investment Ltd. share prices over the last 10 years. Here is what we found out:

Bajaj Holdings & Investment Ltd. share price has appreciated 13.4% annually over the past ten years.

Bajaj Holdings & Investment (BHIL) - erstwhile Bajaj Auto (BAL) - was de-merged as per the Bombay High Court order dated 18 December 2007. The company is essentially a holding and investment company focusing on earnings income through dividend, interest and gains on investments held. Bajaj Auto is the flagship company of the Bajaj Group. The group comprises of 35 companies and was founded in the year 1926.

As

Bajaj Holdings & Investment (BHIL) - erstwhile Bajaj Auto (BAL) - was de-merged as per the Bombay High Court order dated 18 December 2007. The company is essentially a holding and investment company focusing on earnings income through dividend, interest and gains on investments held. Bajaj Auto is the flagship company of the Bajaj Group. The group comprises of 35 companies and was founded in the year 1926.

As part of the demerger Scheme, Bajaj Holdings and Investment, the auto company, was renamed as Bajaj Auto and the erstwhile Bajaj Auto was renamed as Bajaj Holdings & Investment (which would act as the primary investment company).

The process of demerger of erstwhile BAL, which was approved by the board of directors of the company on May 17, 2007 was completed with all approvals being obtained, including that of Bombay High Court and SEBI. Pursuant to the Scheme of Arrangement of Demerger, Bajaj Holdings & Investments Ltd (BHIL, erstwhile BAL) was demerged into three undertakings with effect from the effective date, viz. 20 February 2008. Further Pursuant to the Scheme of Demerger, the GDR programs for Bajaj Auto Limited (BAL) and Bajaj Finserv Limited (BFS) got established on August 21, 2008.

After the demerger BHIL’s manufacturing undertaking was transferred to the new Bajaj Auto (BAL) while its business undertaking consisting of wind farm business and financial services business has been transferred to Bajaj Finserv (BFS) and the company was focusing on new business opportunities.  Post-demerger, BHIL holds over 30% shares each in BAL and BFS. Going forward, BHIL will focus on new business opportunities. BAL and BFS will be able to tap (on an arm’s length basis) into BHIL’s cash pool to support future growth opportunities. BHIL by having more than 30% stake in both BAL and BFS will benefit from the future growth of these companies.

The decision of demerging the company was taken in view of the growth opportunities in the auto, wind energy, insurance and finance sectors and it was decided that it was timely and appropriate to de-merge these activities into separate entities, each of which can focus on these core businesses and strengthen its competencies.

BHIL has been registered as a Non-Banking Financial Company (NBFC) under the Registration No. N-13.01952 dated October 29, 2009 with Reserve Bank of India (RBI). The company is classified as a ‘Systemically Important Non-deposit taking NBFC’ as per RBI regulations.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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