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Bajaj Auto Ltd. Fundamental Analysis-05 English

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Bajaj Auto Ltd Fundamental Analysis

Bajaj Auto Ltd’s fundamental analysis highlights key financial metrics including market capitalisation of ₹264,803.39 crore, PE ratio of 34.35, debt-to-equity ratio of 6.6, and return on equity of 26.43%. These figures reflect the company’s financial health and current market valuation.

Bajaj Auto Ltd Overview

Bajaj Auto Ltd is a leading Indian manufacturer of two-wheelers, three-wheelers, and quadricycles. It operates in the automotive sector, focusing on the development, manufacturing, and distribution of motorcycles, commercial vehicles, electric two-wheelers, and related parts.

The company has a market capitalisation of ₹264,803.39 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 5.84% below its 52-week high and 108.88% above its 52-week low.

Bajaj Auto Financial Results

Bajaj Auto Ltd showed significant financial growth from FY 22 to FY 24, with sales increasing from ₹33,145 crore to ₹44,870 crore and net profit rising from ₹6,166 crore to ₹7,708 crore. The company maintained strong profitability and improved EPS over the years.

1. Revenue Trend: Sales increased from ₹33,145 crore in FY 22 to ₹36,455 crore in FY 23, and further to ₹44,870 crore in FY 24, indicating robust revenue growth.

2. Equity and Liabilities: While detailed equity and liabilities aren’t provided, the table shows an increase in interest expenses from ₹8.66 crore in FY 22 to ₹60.36 crore in FY 24, suggesting increased liabilities or borrowing.

3. Profitability: Operating Profit Margin (OPM) improved from 16% in FY 22 to 18% in FY 23, and further to 20% in FY 24, reflecting enhanced operational efficiency.

4. Earnings per Share (EPS): EPS slightly decreased from ₹213.2 in FY 22 to ₹212.5 in FY 23, but then significantly increased to ₹272.7 in FY 24, indicating strong profit growth per share.

5. Return on Net Worth (RoNW): While RoNW isn’t directly mentioned, the increasing net profit from ₹6,166 crore in FY 22 to ₹7,708 crore in FY 24 suggests a positive impact on RoNW, indicating better returns on shareholders’ equity.

6. Financial Position: The company’s financial position strengthened with EBITDA increasing from ₹6,534 crore in FY 22 to ₹10,198 crore in FY 24, despite rising interest and depreciation expenses, showcasing robust financial health and management.

Bajaj Auto Financial Analysis

FY 24FY 23FY 22
Sales Insight-icon44,87036,45533,145
Expenses36,10930,00527,895
Operating Profit8,7626,4515,250
OPM %201816
Other Income1,4361,1882,101
EBITDA10,1987,6386,534
Interest60.3639.518.66
Depreciation365286270
Profit Before Tax9,7727,3137,072
Tax %242421
Net Profit7,7086,0606,166
EPS272.7212.5213.2
Dividend Payout %29.3465.8865.67

* Consolidated Figures in Rs. Crores

Bajaj Auto Company Metrics

Bajaj Auto has a market capitalization of ₹264,803.39 crore and a book value per share of ₹1,037. With a face value of ₹10, its asset turnover ratio is 1.25. Total debt is ₹1,911.74 crore, ROE is 26.43%, EBITDA (Q) is ₹2,705.76 crore, and dividend yield is 0.84%.

Market Capitalization: 

Market Capitalization represents the total market value of Bajaj Auto’s outstanding shares, amounting to ₹264,803.39 crore.

Book Value: 

The book value per share of Bajaj Auto is ₹1037 indicating the value of the company’s net assets divided by its shares outstanding.

Face Value: 

The face value of Bajaj Auto’s shares is ₹10, which is the nominal value of each share as stated on the share certificate.

Asset Turnover Ratio: 

The Asset Turnover Ratio of 1.25 measures how efficiently Bajaj Auto uses its assets to generate sales revenue or sales income.

Total Debt: 

The Total Debt of Bajaj Auto stands at ₹1,911.74 crore, representing the total amount of money the company owes to creditors.

Return on Equity (ROE): 

The ROE of 26.43% measures Bajaj Auto’s profitability by revealing how much profit the company generates with the money shareholders have invested.

EBITDA (Q): 

The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Bajaj Auto is ₹2,705.76 crore, indicating the company’s operating performance.

Dividend Yield: 

The dividend yield of 0.84% shows the annual dividend payment as a percentage of Bajaj Auto’s current share price, indicating the return on investment from dividends alone.

Bajaj Auto Stock Performance

Bajaj Auto Ltd demonstrated impressive returns with 102% in one year, 34.8% over three years, and 28.4% over five years. This highlights the company’s strong growth potential and consistent performance, making it an attractive option for long-term investors.

PeriodReturn on Investment (%)
1 Year112 
3 Years37.4
5 Years29.6

Example: If an investor had invested ₹10,000 in Bajaj Auto Ltd stock:

1 year ago, their investment would be worth ₹21,200.

3 years ago, their investment would have grown to ₹13,740.

5 years ago, their investment would have increased to approximately ₹12,960.

Bajaj Auto Ltd  Peer Comparison

Bajaj Auto Ltd, with a current market price of ₹9,427 and a P/E ratio of 33%, has a market cap of ₹2,63,133 Cr and a one-year return of 102%. In comparison, Atul Auto, with a CMP of ₹635 and a P/E of 250, has a one-year return of 70%, showcasing Bajaj Auto’s stronger market performance.

NameCMP Rs.P/EMar Cap Rs.Cr.1Yr return %Vol 1d1mth return %From 52w highDown %6mth return %
Bajaj Auto9,427332,63,133102254379-2.160.946.0921.53
Atul Auto6352501,7667081801-18.760.7524.811182.00%

Bajaj Auto Limited Shareholding Pattern

Bajaj Auto Ltd’s shareholding pattern includes promoters holding 95,547,251 shares (34.20%), FIIs with 3,331,739 shares (1.20%), the public holding 9,924,360 shares (3.60%), and DIIs with 3,548,619 shares (1.30%), reflecting a diversified ownership structure.

CategorySharesShares %
Promoter9554725134.20%
Fii33317391.20%
Public99243603.60%
Dii35486191.30%

Bajaj Auto History

Bajaj Auto Limited is a prominent Indian manufacturer of two-wheelers, three-wheelers, and quadricycles. The company’s core business revolves around the development, manufacturing, and distribution of automobiles, including motorcycles, commercial vehicles, and electric two-wheelers. Bajaj Auto operates across three main segments: Automotive, Investments, and Others.

The company’s product portfolio is diverse and includes popular motorcycle brands such as Boxer, CT, Platina, Discover, Pulsar, Avenger, KTM, Dominar, Husqvarna, and Chetak. In the commercial vehicle segment, Bajaj Auto offers passenger carriers, goods carriers, and quadricycles. This wide range of products caters to various consumer needs and market segments.

Bajaj Auto has a strong domestic presence in India and a significant international footprint. The company operates through multiple manufacturing plants in India, including facilities in Waluj, Chakan, and Pantnagar. Additionally, Bajaj Auto has expanded its global reach through five overseas subsidiaries in Indonesia, Netherlands, Thailand, Spain, and Brazil, as well as two Indian subsidiaries focusing on electric vehicle technology and consumer finance.

How To Invest In Bajaj Auto Ltd Share?

To invest in Bajaj Auto Ltd shares, start by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.

Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for Bajaj Auto shares at your preferred price.

Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.

Bajaj Auto Limited Fundamental Analysis – FAQs

1. What Is The Fundamental Analysis Of Bajaj Auto?

Fundamental analysis of Bajaj Auto examines key financial metrics: Market Cap (₹264,803.39 crore), PE Ratio (34.35), Debt to Equity (6.6), and Return on Equity (26.43%). These indicators provide insights into the company’s financial health, market valuation, and overall performance in the automotive sector.

2. What is the Market Cap of Bajaj Auto Ltd?

The market capitalization of Bajaj Auto Ltd is ₹264,803.39 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.

3. What Is Bajaj Auto Limited?

Bajaj Auto Limited is a leading Indian manufacturer of two-wheelers, three-wheelers, and quadricycles. It develops, produces, and distributes motorcycles, commercial vehicles, and electric two-wheelers. The company has a strong domestic presence and international operations, offering a wide range of automotive products.

4. Who Is Bajaj Auto Owner?

Bajaj Auto is a public limited company and doesn’t have a single owner. The Bajaj family, led by Rahul Bajaj and his successors, has been a significant promoter. However, as a listed company, it has multiple shareholders including institutional investors, public shareholders, and promoter entities.

5. Who Are The Main Shareholders Of Bajaj Auto?

The main shareholders of Bajaj Auto typically include the Bajaj family (promoter group), institutional investors (domestic and foreign), mutual funds, and public shareholders. For the most current and accurate information on major shareholders, refer to the latest shareholding pattern disclosed by the company.

6. What Type Of Industry Is Bajaj Auto?

Bajaj Auto operates in the automotive industry, specifically in the two-wheeler, three-wheeler, and quadricycle segments. The company is a key player in the manufacturing and distribution of motorcycles, scooters, commercial vehicles, and electric two-wheelers, contributing significantly to India’s automotive sector.

7. How To Invest In Bajaj Auto Ltd Share?

To invest in Bajaj Auto shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.

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