NSEI:BAJAJ-AUTO

Stock Analysis Report

Executive Summary

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

Rewards

Earnings grew by 15.1% over the past year

Pays a high and reliable dividend of 1.85%

Risk Analysis

No risks detected for BAJAJ-AUTO from our risk checks.


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


Market Performance


7 Day Return

2.1%

BAJAJ-AUTO

-2.6%

IN Auto

-1.3%

IN Market


1 Year Return

16.4%

BAJAJ-AUTO

-6.6%

IN Auto

5.2%

IN Market

Return vs Industry: BAJAJ-AUTO exceeded the Indian Auto industry which returned -6.6% over the past year.

Return vs Market: BAJAJ-AUTO exceeded the Indian Market which returned 5.2% over the past year.


Shareholder returns

BAJAJ-AUTOIndustryMarket
7 Day2.1%-2.6%-1.3%
30 Day-0.08%-4.0%-0.2%
90 Day15.1%11.1%7.6%
1 Year19.0%16.4%-5.2%-6.6%7.2%5.2%
3 Year26.9%19.2%-7.0%-9.8%30.3%23.4%
5 Year43.0%28.6%8.9%3.6%39.3%26.8%

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?

18.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BAJAJ-AUTO (₹3243.1) is trading above our estimate of fair value (₹1326.66)

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


Price To Earnings Ratio

PE vs Industry: BAJAJ-AUTO is poor value based on its PE Ratio (18.2x) compared to the Auto industry average (17.9x).

PE vs Market: BAJAJ-AUTO is poor value based on its PE Ratio (18.2x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: BAJAJ-AUTO is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: BAJAJ-AUTO is overvalued based on its PB Ratio (4x) compared to the IN Auto industry average (2.5x).


Next Steps

Future Growth

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

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAJAJ-AUTO's forecast earnings growth (4.2% per year) is below the savings rate (6.5%).

Earnings vs Market: BAJAJ-AUTO's earnings (4.2% per year) are forecast to grow slower than the Indian market (19.8% per year).

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

Revenue vs Market: BAJAJ-AUTO's revenue (5.4% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: BAJAJ-AUTO's revenue (5.4% 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 low in 3 years time (18.5%).


Next Steps

Past Performance

How has Bajaj Auto performed over the past 5 years?

9.0%

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 (16.3%) are higher than last year (15.1%).


Past Earnings Growth Analysis

Earnings Trend: BAJAJ-AUTO's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: BAJAJ-AUTO's earnings growth over the past year (15.1%) exceeds its 5-year average (9% per year).

Earnings vs Industry: BAJAJ-AUTO earnings growth over the past year (15.1%) exceeded the Auto industry 6%.


Return on Equity

High ROE: BAJAJ-AUTO's Return on Equity (21.8%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bajaj Auto's financial position?


Financial Position Analysis

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

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


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 0.8%.

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

Inventory Level: BAJAJ-AUTO has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if BAJAJ-AUTO's debt is covered by short term assets.


Next Steps

Dividend

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

1.85%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%0.6%markettop25%2.5%industryaverage1.5%forecastin3Years2.0%

Current dividend yield vs market & industry

Notable Dividend: BAJAJ-AUTO's dividend (1.85%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: BAJAJ-AUTO's dividend (1.85%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).


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: With its reasonably low payout ratio (33.6%), BAJAJ-AUTO's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BAJAJ-AUTO's dividends in 3 years are forecast to be well covered by earnings (34.4% payout ratio).


Next Steps

Management

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

12.2yrs

Average management tenure


CEO

Rajiv Bajaj (53yo)

14.7yrs

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 ($USD4.52M) is above average for companies of similar size in the Indian market ($USD1.13M).

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


Management Age and Tenure

12.2yrs

Average Tenure

59.5yo

Average Age

Experienced Management: BAJAJ-AUTO's management team is seasoned and experienced (12.2 years average tenure).


Board Age and Tenure

13.3yrs

Average Tenure

66yo

Average Age

Experienced Board: BAJAJ-AUTO's board of directors are seasoned and experienced ( 13.3 years average tenure).


Insider Trading

Insider Buying: BAJAJ-AUTO insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹156,458,42426 Sep 19
Nirajkumar Bajaj
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares53,000
Max Price₹2,952.05
Buy₹156,851,06826 Sep 19
Bajaj Sevashram Pvt. Ltd.
EntityCompany
Shares53,000
Max Price₹2,959.45
Buy₹2,608,18607 Aug 19
Kevin D'Sa
EntityIndividual
Role
Senior Key Executive
President of Retail Finance
Shares1,000
Max Price₹2,608.19
Sell₹18,475,20505 Jul 19
Rajivnayan Bajaj
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares6,400
Max Price₹2,886.75
Buy₹18,529,59505 Jul 19
Rajivnayan Bajaj
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
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

Ownership Breakdown

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


Management Team

  • J. Sridhar (64yo)

    Company Secretary & Compliance Officer

    • Tenure: 18.4yrs
    • Compensation: ₹16.96m
  • Rajiv Bajaj (53yo)

    MD, CEO & Executive Director

    • Tenure: 14.7yrs
    • Compensation: ₹323.10m
  • Rahul Kumar Bajaj (81yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: ₹114.22m
  • Pradeep Shrivastava (58yo)

    Executive Director

    • Tenure: 3.7yrs
    • Compensation: ₹66.54m
  • S. Ravikumar (61yo)

    Chief Business Development Officer

    • Tenure: 0yrs
    • Compensation: ₹3.69m
  • Kevin D'Sa (65yo)

    President of Retail Finance

    • Tenure: 0yrs
    • Compensation: ₹37.53m
  • Abraham Joseph (51yo)

    Chief Technology Officer

    • Tenure: 0yrs
  • Rakesh Sharma (55yo)

    Chief Commercial Officer & Executive Director

    • Tenure: 1.2yrs
    • Compensation: ₹203.85m
  • Soumen Ray

    CFO & President of Finance

    • Tenure: 0.6yrs
  • Ravi Ramasamy

    Chief Human Resources Officer

    • Tenure: 2.8yrs

Board Members

  • Doveton Jagannathrao Rao (80yo)

    Independent Non-Executive Director

    • Tenure: 26.9yrs
    • Compensation: ₹4.50m
  • Shekhar Bajaj (71yo)

    Non-Executive Director

    • Tenure: 24.9yrs
    • Compensation: ₹1.50m
  • Sanjiv Bajaj (50yo)

    Non-Executive Director

    • Tenure: 15.7yrs
    • Compensation: ₹2.00m
  • Rajiv Bajaj (53yo)

    MD, CEO & Executive Director

    • Tenure: 14.7yrs
    • Compensation: ₹323.10m
  • Rahul Kumar Bajaj (81yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: ₹114.22m
  • Madhur Bajaj (67yo)

    Vice Chairman

    • Tenure: 2.7yrs
    • Compensation: ₹2.00m
  • Pradeep Shrivastava (58yo)

    Executive Director

    • Tenure: 3.7yrs
    • Compensation: ₹66.54m
  • Nanoo Pamnani (74yo)

    Independent Non-Executive Director

    • Tenure: 11.9yrs
    • Compensation: ₹6.25m
  • Niraj Bajaj (65yo)

    Non-Executive Director

    • Tenure: 13.3yrs
    • Compensation: ₹2.00m
  • Rakesh Sharma (55yo)

    Chief Commercial Officer & Executive Director

    • Tenure: 1.2yrs
    • Compensation: ₹203.85m

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: ₹940.776b
  • 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 v ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 12:47
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
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.