NSEI:BAJAJ-AUTO

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Executive Summary

Bajaj Auto Limited, together with its subsidiaries, develops, manufactures, and distributes automobiles in India. More Details


Snowflake Analysis

Flawless balance sheet established dividend payer.


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: BAJAJ-AUTO has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

BAJAJ-AUTO

0.8%

IN Auto

1.4%

IN Market


1 Year Return

-7.9%

BAJAJ-AUTO

-0.8%

IN Auto

2.2%

IN Market

Return vs Industry: BAJAJ-AUTO underperformed the Indian Auto industry which returned -0.8% over the past year.

Return vs Market: BAJAJ-AUTO underperformed the Indian Market which returned 2.2% over the past year.


Shareholder returns

BAJAJ-AUTOIndustryMarket
7 Day-2.8%0.8%1.4%
30 Day-2.1%6.1%5.6%
90 Day-7.2%12.3%8.5%
1 Year-3.8%-7.9%0.8%-0.8%4.0%2.2%
3 Year-3.8%-11.8%-23.1%-25.8%-0.5%-5.3%
5 Year35.6%19.0%15.5%9.4%41.6%31.1%

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

Valuation

Is Bajaj Auto undervalued compared to its fair value and its price relative to the market?

19.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BAJAJ-AUTO (₹2895.15) is trading above our estimate of fair value (₹968.58)

Significantly Below Fair Value: BAJAJ-AUTO is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BAJAJ-AUTO is good value based on its PE Ratio (19.6x) compared to the IN Auto industry average (29x).

PE vs Market: BAJAJ-AUTO is poor value based on its PE Ratio (19.6x) compared to the Indian market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: BAJAJ-AUTO is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: BAJAJ-AUTO is overvalued based on its PB Ratio (3.5x) compared to the IN Auto industry average (2.7x).


Next Steps

Future Growth

How is Bajaj Auto forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

19.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAJAJ-AUTO's forecast earnings growth (19.8% per year) is above the savings rate (7.2%).

Earnings vs Market: BAJAJ-AUTO's earnings (19.8% per year) are forecast to grow slower than the Indian market (25.9% per year).

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

Revenue vs Market: BAJAJ-AUTO's revenue (16.3% per year) is forecast to grow faster than the Indian market (11.4% per year).

High Growth Revenue: BAJAJ-AUTO's revenue (16.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BAJAJ-AUTO's Return on Equity is forecast to be high in 3 years time (25%)


Next Steps

Past Performance

How has Bajaj Auto performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAJAJ-AUTO has high quality earnings.

Growing Profit Margin: BAJAJ-AUTO's current net profit margins (16.4%) are higher than last year (16.3%).


Past Earnings Growth Analysis

Earnings Trend: BAJAJ-AUTO's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: BAJAJ-AUTO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BAJAJ-AUTO had negative earnings growth (-17.4%) over the past year, making it difficult to compare to the Auto industry average (-35.2%).


Return on Equity

High ROE: BAJAJ-AUTO's Return on Equity (18%) is considered low.


Next Steps

Financial Health

How is Bajaj Auto's financial position?


Financial Position Analysis

Short Term Liabilities: BAJAJ-AUTO's short term assets (₹139.5B) exceed its short term liabilities (₹49.8B).

Long Term Liabilities: BAJAJ-AUTO's short term assets (₹139.5B) exceed its long term liabilities (₹7.0B).


Debt to Equity History and Analysis

Debt Level: BAJAJ-AUTO is debt free.

Reducing Debt: BAJAJ-AUTO has no debt compared to 5 years ago when its debt to equity ratio was 0.4%.

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

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


Balance Sheet


Next Steps

Dividend

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

4.14%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BAJAJ-AUTO's dividend (4.14%) is higher than the bottom 25% of dividend payers in the Indian market (0.55%).

High Dividend: BAJAJ-AUTO's dividend (4.14%) is in the top 25% of dividend payers in the Indian market (2.28%)


Stability and Growth of Payments

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

Growing Dividend: BAJAJ-AUTO's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: Unable to calculate sustainability of dividends as BAJAJ-AUTO has not reported any payouts.


Future Payout to Shareholders

Future Dividend Coverage: BAJAJ-AUTO's dividends in 3 years are forecast to be covered by earnings (60.6% payout ratio).


Next Steps

Management

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

13.0yrs

Average management tenure


CEO

Rajiv Bajaj (54 yo)

15.5yrs

Tenure

₹398,636,673

Compensation

Mr. Rajivnayan Rahulkumar Bajaj also known as Rajiv, is a Non-Executive Non-Independent Director of Bajaj Electricals Limited since May 22, 2019. Mr. Bajaj serves as Managing Director of Bajaj Capital Limi ...


CEO Compensation Analysis

Compensation vs Market: Rajiv's total compensation ($USD5.40M) is above average for companies of similar size in the Indian market ($USD1.36M).

Compensation vs Earnings: Rajiv's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rajivnayan Bajaj
MD, CEO & Executive Director15.5yrs₹398.64m0.34%
₹ 3.0b
Soumen Ray
CFO & President of Finance1.42yrs₹48.94mno data
J. Sridhar
Company Secretary & Compliance Officer19.25yrs₹20.48mno data
Pradeep Shrivastava
Executive Director4.5yrs₹78.60m0.000030%
₹ 267.6k
Rakesh Sharma
Chief Commercial Officer & Executive Director2yrs₹73.55mno data
Abraham Joseph
Chief Technology Officerno datano datano data
Narayan Sundaraman
Head of Marketing0.25yrno datano data
Ravi Ramasamy
Chief Human Resources Officer3.67yrsno datano data
S. Ravikumar
Chief Business Development Officerno data₹3.69mno data
R. Maheshwari
President of Commercial Vehicle Business13.25yrsno datano data
Kevin D'Sa
President of Retail Financeno data₹37.53mno data
Eric Vas
President of Urbanite Businessno datano datano data

13.0yrs

Average Tenure

60.5yo

Average Age

Experienced Management: BAJAJ-AUTO's management team is seasoned and experienced (13 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rajivnayan Bajaj
MD, CEO & Executive Director15.5yrs₹398.64m0.34%
₹ 3.0b
Pradeep Shrivastava
Executive Director4.5yrs₹78.60m0.000030%
₹ 267.6k
Rakesh Sharma
Chief Commercial Officer & Executive Director2yrs₹73.55mno data
Doveton Jagannathrao Rao
Independent Non-Executive Director27.75yrs₹5.25mno data
Shekharkumar Bajaj
Non-Executive Director25.75yrs₹2.45m0.0078%
₹ 69.3m
Sanjivnayan Bajaj
Non-Executive Director16.5yrs₹2.80m0.21%
₹ 1.9b
Rahul Kumar Bajaj
Non-Executive Chairmanno data₹116.07m1.15%
₹ 10.3b
Madhur Kumar Bajaj
Vice Chairman3.5yrs₹1.75m1.15%
₹ 10.2b
Naushad Forbes
Independent Non-Executive Director3.42yrs₹4.55m0.0012%
₹ 10.8m
Nirajkumar Bajaj
Non-Executive Director14.08yrs₹2.45m1.75%
₹ 15.6b
Gita Piramal
Independent Non-Executive Director5.5yrs₹5.60mno data
Anami Narayan Roy
Non-Executive Independent Director3.08yrs₹2.45mno data

5.5yrs

Average Tenure

66yo

Average Age

Experienced Board: BAJAJ-AUTO's board of directors are considered experienced (5.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BAJAJ-AUTO 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: BAJAJ-AUTO
  • Exchange: NSEI
  • Founded: 1945
  • Industry: Motorcycle Manufacturers
  • Sector: Automobiles
  • Market Cap: ₹891.901b
  • Shares outstanding: 289.37m
  • Website: https://www.bajajauto.com

Number of Employees


Location

  • Bajaj Auto Limited
  • Mumbai-Pune Road
  • Akurdi
  • 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, together with its subsidiaries, develops, manufactures, and distributes automobiles in India. It operates through two segments, Automotive and Investments. The company offers motorcycle ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 13:07
End of Day Share Price2020/10/26 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.