BSE:532977

Stock Analysis Report

Executive Summary

Bajaj Auto Limited develops, manufactures, and distributes automobiles in India.

Snowflake

Fundamentals

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Bajaj Auto's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.6%

BSE:532977

-1.5%

IN Auto

-0.7%

IN Market


1 Year Return

3.4%

BSE:532977

-32.9%

IN Auto

-12.1%

IN Market

532977 outperformed the Auto industry which returned -33% over the past year.

532977 outperformed the Market in India which returned -12.1% over the past year.


Share holder returns

532977IndustryMarket
7 Day1.6%-1.5%-0.7%
30 Day4.5%-3.5%-4.6%
90 Day-9.6%-13.4%-4.3%
1 Year5.7%3.4%-31.9%-32.9%-10.3%-12.1%
3 Year-0.1%-6.2%-19.9%-22.5%18.9%12.8%
5 Year35.1%21.5%6.1%1.0%37.6%24.7%

Price Volatility Vs. Market

How volatile is Bajaj Auto's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bajaj Auto undervalued based on future cash flows and its price relative to the stock market?

16.25x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Bajaj Auto's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Bajaj Auto's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Bajaj Auto is overvalued based on earnings compared to the IN Auto industry average.

Bajaj Auto is overvalued based on earnings compared to the India market.


Price Based on Expected Growth

Bajaj Auto is poor value based on expected growth next year.


Price Based on Value of Assets

Bajaj Auto is overvalued based on assets compared to the IN Auto industry average.


Next Steps

Future Growth

How is Bajaj Auto expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Bajaj Auto's revenue is expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).

Bajaj Auto's earnings are expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).

Bajaj Auto's revenue growth is positive but not above the India market average.

Bajaj Auto's earnings growth is positive but not above the India market average.

Bajaj Auto's earnings growth is positive but not above the low risk savings rate of 7.6%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Bajaj Auto will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Bajaj Auto performed over the past 5 years?

8.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Bajaj Auto's year on year earnings growth rate has been positive over the past 5 years.

Bajaj Auto's 1-year earnings growth exceeds its 5-year average (10.7% vs 8.6%)

Bajaj Auto's earnings growth has exceeded the IN Auto industry average in the past year (10.7% vs 4%).


Return on Equity

Bajaj Auto has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Bajaj Auto used its assets more efficiently than the IN Auto industry average last year based on Return on Assets.


Return on Capital Employed

Bajaj Auto's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Bajaj Auto's financial position?


Financial Position Analysis

Bajaj Auto is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Bajaj Auto's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Bajaj Auto has no debt.

Bajaj Auto has no debt compared to 5 years ago when it was 0.7%.

Bajaj Auto has no debt, it does not need to be covered by operating cash flow.

Bajaj Auto has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Bajaj Auto has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

What is Bajaj Auto's current dividend yield, its reliability and sustainability?

2.29%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Bajaj Auto's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.63%).

Bajaj Auto's dividend is below the markets top 25% of dividend payers in India (2.52%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.8x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Bajaj Auto's salary, the management and board of directors tenure and is there insider trading?

11.8yrs

Average management tenure


CEO

Rajiv Bajaj (53yo)

14.3yrs

Tenure

₹323,102,040

Compensation

Mr. Rajivnayan Rahulkumar Bajaj also known as Rajiv, is a Director of Bajaj Electricals Limited since May 22, 2019. Mr. Bajaj serves as Managing Director of Bajaj Capital Limited. Mr. Bajaj has been the Ma ...


CEO Compensation Analysis

Rajiv's remuneration is higher than average for companies of similar size in India.

Rajiv's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

11.8yrs

Average Tenure

59.5yo

Average Age

The average tenure for the Bajaj Auto management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

12.9yrs

Average Tenure

66yo

Average Age

The average tenure for the Bajaj Auto board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by Bajaj Auto individual insiders in the past 3 months.


Recent Insider Transactions

Buy₹2,608,18607 Aug 19
Kevin D'Sa
EntityIndividual
Role
President of Retail Finance
Shares1,000
Max Price₹2,608.19
Sell₹18,475,20505 Jul 19
Rajivnayan Bajaj
EntityIndividual
Role
MD, CEO & Executive Director
Member of the Board of Directors
Shares6,400
Max Price₹2,886.75
Buy₹18,529,59505 Jul 19
Rajivnayan Bajaj
EntityIndividual
Role
MD, CEO & Executive Director
Member of the Board of Directors
Shares6,400
Max Price₹2,895.25
Buy₹1,858,493,08129 Mar 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares615,142
Max Price₹3,021.24
Buy₹697,405,66028 Mar 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares234,858
Max Price₹2,983.82
Buy₹602,566,86726 Mar 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares204,000
Max Price₹2,953.76
Buy₹1,476,457,86221 Mar 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares500,000
Max Price₹2,952.92
Buy₹690,445,51719 Mar 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares230,105
Max Price₹3,017.44
Buy₹1,892,748,87514 Mar 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares628,437
Max Price₹3,013.68
Buy₹1,510,828,62112 Mar 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares506,000
Max Price₹2,998.86
Buy₹213,495,74708 Mar 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares73,000
Max Price₹2,924.60
Buy₹963,340,06407 Mar 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares332,188
Max Price₹2,902.83
Buy₹1,926,401,09301 Mar 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares661,000
Max Price₹2,914.37
Buy₹5,735,61028 Feb 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares2,022
Max Price₹2,836.60
Buy₹72,846,66519 Feb 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares26,227
Max Price₹2,777.54
Buy₹1,224,051,89318 Feb 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares433,562
Max Price₹2,823.25
Buy₹55,983,60515 Feb 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares19,825
Max Price₹2,823.89
Buy₹151,144,19514 Feb 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares53,486
Max Price₹2,825.86
Buy₹48,056,77713 Feb 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares17,004
Max Price₹2,826.20
Buy₹673,767,12512 Feb 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares236,500
Max Price₹2,848.91
Buy₹310,012,50808 Feb 19
Bajaj Holdings & Investment Limited
EntityCompany
Shares108,855
Max Price₹2,847.94
Buy₹10,043,93714 Sep 18
Naushad Forbes
EntityIndividual
Shares3,500
Max Price₹2,901.16

Ownership Breakdown


Management Team

  • Rajiv Bajaj (53yo)

    MD, CEO & Executive Director

    • Tenure: 14.3yrs
    • Compensation: 323.10m
  • Rakesh Sharma (55yo)

    Chief Commercial Officer & Executive Director

    • Tenure: 11.8yrs
    • Compensation: 203.85m
  • Kevin D'Sa (65yo)

    President of Retail Finance

    • Compensation: 37.53m
  • Abraham Joseph (51yo)

    Chief Technology Officer

  • S. Ravikumar (61yo)

    Chief Business Development Officer

    • Compensation: 3.69m
  • Pradeep Shrivastava (58yo)

    Executive Director

    • Compensation: 66.54m
  • Soumen Ray

    CFO & President of Finance

    • Tenure: 0.3yrs
  • Ravi Ramasamy

    Chief Human Resources Officer

    • Tenure: 2.5yrs
  • J. Sridhar (64yo)

    Company Secretary & Compliance Officer

    • Tenure: 18.1yrs
    • Compensation: 16.96m
  • Rahul Kumar Bajaj (81yo)

    Chairman

    • Compensation: 114.22m

Board Members

  • Shekhar Bajaj (71yo)

    Non-Executive Director

    • Tenure: 24.6yrs
    • Compensation: 1.50m
  • Doveton Jagannathrao Rao (80yo)

    Independent Non-Executive Director

    • Tenure: 26.6yrs
    • Compensation: 4.50m
  • Sanjiv Bajaj (50yo)

    Non-Executive Director

    • Tenure: 15.3yrs
    • Compensation: 2.00m
  • Niraj Bajaj (65yo)

    Non-Executive Director

    • Tenure: 12.9yrs
    • Compensation: 2.00m
  • Rajiv Bajaj (53yo)

    MD, CEO & Executive Director

    • Tenure: 17.4yrs
    • Compensation: 323.10m
  • Nanoo Pamnani (74yo)

    Independent Non-Executive Director

    • Tenure: 11.6yrs
    • Compensation: 6.25m
  • Rakesh Sharma (55yo)

    Chief Commercial Officer & Executive Director

    • Tenure: 0.8yrs
    • Compensation: 203.85m
  • Pradeep Shrivastava (58yo)

    Executive Director

    • Tenure: 3.3yrs
    • Compensation: 66.54m
  • Rahul Kumar Bajaj (81yo)

    Chairman

    • Compensation: 114.22m
  • Madhur Bajaj (67yo)

    Vice Chairman

    • Tenure: 2.3yrs
    • Compensation: 2.00m

Company Information

Bajaj Auto Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bajaj Auto Limited
  • Ticker: 532977
  • Exchange: BSE
  • Founded: 1945
  • Industry: motorcycle manufacturers
  • Sector: automobiles
  • Market Cap: ₹796.034b
  • Shares outstanding: 289.37m
  • Website: Click here

Number of Employees


Location

  • Bajaj Auto Limited
  • Bajaj Auto Ltd. Complex
  • Mumbai-Pune Road
  • Pune
  • Maharashtra
  • 411035
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532977BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2008
BAJAJ-AUTONSEI (National Stock Exchange of India)YesEquity SharesININRMay 2008

Biography

Bajaj Auto Limited develops, manufactures, and distributes automobiles in India. It operates through Automotive and Investments segments. The company offers motorcycles, three and four wheeler commercial v ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 12:52
End of Day Share Price2019/08/16 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.