BSE:532977

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Outstanding track record with flawless balance sheet 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

Stable Share Price: 532977's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

12.5%

532977

-3.5%

IN Auto

-1.1%

IN Market


1 Year Return

-21.9%

532977

-45.3%

IN Auto

-31.7%

IN Market

Return vs Industry: 532977 exceeded the Indian Auto industry which returned -45.3% over the past year.

Return vs Market: 532977 exceeded the Indian Market which returned -31.7% over the past year.


Shareholder returns

532977IndustryMarket
7 Day12.5%-3.5%-1.1%
30 Day-16.7%-34.3%-25.1%
90 Day-25.6%-43.1%-30.6%
1 Year-16.6%-21.9%-44.1%-45.3%-30.3%-31.7%
3 Year-10.2%-19.3%-50.6%-52.4%-20.1%-24.4%
5 Year26.0%8.5%-38.4%-41.3%-11.0%-15.7%

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 compared to its fair value and its price relative to the market?

6.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 532977 (₹2278.25) is trading below our estimate of fair value (₹2441.09)

Significantly Below Fair Value: 532977 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 532977 is good value based on its PE Ratio (12.5x) compared to the Auto industry average (12.8x).

PE vs Market: 532977 is poor value based on its PE Ratio (12.5x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 532977 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 532977 is overvalued based on its PB Ratio (2.8x) compared to the IN Auto industry average (1.6x).


Next Steps

Future Growth

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

7.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532977's forecast earnings growth (7.4% per year) is above the savings rate (6.5%).

Earnings vs Market: 532977's earnings (7.4% per year) are forecast to grow slower than the Indian market (19.1% per year).

High Growth Earnings: 532977's earnings are forecast to grow, but not significantly.

Revenue vs Market: 532977's revenue (7.5% per year) is forecast to grow slower than the Indian market (8.8% per year).

High Growth Revenue: 532977's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532977's Return on Equity is forecast to be low in 3 years time (20%).


Next Steps

Past Performance

How has Bajaj Auto performed over the past 5 years?

9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532977 has high quality earnings.

Growing Profit Margin: 532977's current net profit margins (16.5%) are higher than last year (15.2%).


Past Earnings Growth Analysis

Earnings Trend: 532977's earnings have grown by 9.2% per year over the past 5 years.

Accelerating Growth: 532977's earnings growth over the past year (12.2%) exceeds its 5-year average (9.2% per year).

Earnings vs Industry: 532977 earnings growth over the past year (12.2%) exceeded the Auto industry 0%.


Return on Equity

High ROE: 532977's Return on Equity (22.2%) is considered high.


Next Steps

Financial Health

How is Bajaj Auto's financial position?


Financial Position Analysis

Short Term Liabilities: 532977's short term assets (₹79.8B) exceed its short term liabilities (₹43.1B).

Long Term Liabilities: 532977's short term assets (₹79.8B) exceed its long term liabilities (₹6.8B).


Debt to Equity History and Analysis

Debt Level: 532977 is debt free.

Reducing Debt: 532977 has no debt compared to 5 years ago when its debt to equity ratio was 0.9%.

Debt Coverage: 532977 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 532977 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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

5.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 532977's dividend (5.26%) is higher than the bottom 25% of dividend payers in the Indian market (0.96%).

High Dividend: 532977's dividend (5.26%) is in the top 25% of dividend payers in the Indian market (4.06%)


Stability and Growth of Payments

Stable Dividend: 532977's dividends per share have been stable in the past 10 years.

Growing Dividend: 532977's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33%), 532977's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 532977's dividends in 3 years are forecast to be well covered by earnings (37.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.6yrs

Average management tenure


CEO

Rajiv Bajaj (53yo)

15s

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

Compensation vs Market: Rajiv's total compensation ($USD4.25M) is above average for companies of similar size in the Indian market ($USD1.07M).

Compensation vs Earnings: Rajiv's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rajivnayan Bajaj
MD, CEO & Executive Director15yrs₹323.10m0.13% 744.6m
J. Sridhar
Company Secretary & Compliance Officer18.75yrs₹16.96mno data
Pradeep Shrivastava
Executive Director4yrs₹66.54m0.000030% 176.6k
Rakesh Sharma
Chief Commercial Officer & Executive Director1.5yrs₹203.85mno data
Kevin D'Sa
President of Retail Financeno data₹37.53m0.0019% 11.4m
Soumen Ray
CFO & President of Finance0.92yrno datano data
Abraham Joseph
Chief Technology Officerno datano data0.00022% 1.3m
Ravi Ramasamy
Chief Human Resources Officer3.17yrsno datano data
S. Ravikumar
Chief Business Development Officerno data₹3.69mno data
R. Maheshwari
President of Commercial Vehicle Business12.75yrsno datano data

12.6yrs

Average Tenure

59.5yo

Average Age

Experienced Management: 532977's management team is seasoned and experienced (12.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rajivnayan Bajaj
MD, CEO & Executive Director15yrs₹323.10m0.13% 744.6m
Pradeep Shrivastava
Executive Director4yrs₹66.54m0.000030% 176.6k
Rakesh Sharma
Chief Commercial Officer & Executive Director1.5yrs₹203.85mno data
Doveton Jagannathrao Rao
Independent Non-Executive Director27.25yrs₹4.50mno data
Shekharkumar Bajaj
Non-Executive Director25.25yrs₹1.50m0.0030% 17.7m
Sanjivnayan Bajaj
Non-Executive Director16yrs₹2.00m0.26% 1.5b
Rahul Kumar Bajaj
Non-Executive Chairmanno data₹114.22m1.15% 6.8b
Madhur Kumar Bajaj
Vice Chairman3yrs₹2.00m1.15% 6.7b
Nirajkumar Bajaj
Non-Executive Director13.58yrs₹2.00m0.49% 2.9b
Gita Piramal
Independent Non-Executive Director5yrs₹4.25mno data

13.6yrs

Average Tenure

65yo

Average Age

Experienced Board: 532977's board of directors are seasoned and experienced ( 13.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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: ₹588.500b
  • Shares outstanding: 289.37m
  • Website: https://www.bajajauto.com

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 vehicles, and quadricycles, as well as spare parts. It also exports its products to approximately 79 countries in Latin America, Africa, South Asia, the Middle East, Europe, and the Asia Pacific. Bajaj Auto Limited was founded in 1945 and is based in Pune, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 13:01
End of Day Share Price2020/04/07 00:00
Earnings2019/12/31
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.