BSE:500031

Stock Analysis Report

Executive Summary

Bajaj Electricals Limited engages in the consumer durables; and engineering, procurement, and construction businesses in India.

Rewards

Earnings are forecast to grow 102.81% per year

Risk Analysis

Interest payments are not well covered by earnings

Dividend of 0.84% is not well covered by earnings

Highly volatile share price over past 3 months

Profit margins (0.3%) are lower than last year (2.2%)



Snowflake Analysis

Reasonable growth potential second-rate dividend payer.


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Share Price & News

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


Latest Share Price and Events

Stable Share Price: 500031's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.7%

500031

1.8%

IN Consumer Durables

-1.5%

IN Market


1 Year Return

-4.2%

500031

37.4%

IN Consumer Durables

10.7%

IN Market

Return vs Industry: 500031 underperformed the Indian Consumer Durables industry which returned 36.5% over the past year.

Return vs Market: 500031 underperformed the Indian Market which returned 11.1% over the past year.


Shareholder returns

500031IndustryMarket
7 Day-3.7%1.8%-1.5%
30 Day4.1%6.0%-2.7%
90 Day33.6%13.9%1.3%
1 Year-1.0%-4.2%38.5%37.4%12.7%10.7%
3 Year68.6%60.8%48.6%46.1%22.0%15.1%
5 Year105.3%91.8%100.6%95.1%34.5%22.0%

Price Volatility Vs. Market

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


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Valuation

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

227.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 500031 (₹414.25) is trading above our estimate of fair value (₹266.88)

Significantly Below Fair Value: 500031 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 500031 is poor value based on its PE Ratio (227.6x) compared to the Consumer Durables industry average (22.9x).

PE vs Market: 500031 is poor value based on its PE Ratio (227.6x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 500031 is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: 500031 is overvalued based on its PB Ratio (4.3x) compared to the IN Consumer Durables industry average (1.4x).


Next Steps

Future Growth

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

102.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500031's forecast earnings growth (102.8% per year) is above the savings rate (6.5%).

Earnings vs Market: 500031's earnings (102.8% per year) are forecast to grow faster than the Indian market (20.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 500031's revenue (9.2% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 500031's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 500031's Return on Equity is forecast to be low in 3 years time (16%).


Next Steps

Past Performance

How has Bajaj Electricals performed over the past 5 years?

25.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500031 has high quality earnings.

Growing Profit Margin: 500031's current net profit margins (0.3%) are lower than last year (2.2%).


Past Earnings Growth Analysis

Earnings Trend: 500031 has become profitable over the past 5 years, growing earnings by 25.5% per year.

Accelerating Growth: 500031's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 500031 had negative earnings growth (-88%) over the past year, making it difficult to compare to the Consumer Durables industry average (13.9%).


Return on Equity

High ROE: 500031's Return on Equity (1.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Bajaj Electricals's financial position?


Financial Position Analysis

Short Term Liabilities: 500031's short term assets (₹32.1B) exceed its short term liabilities (₹30.7B).

Long Term Liabilities: 500031's short term assets (₹32.1B) exceed its long term liabilities (₹4.5B).


Debt to Equity History and Analysis

Debt Level: 500031's debt to equity ratio (179.5%) is considered high.

Reducing Debt: 500031's debt to equity ratio has increased from 69.9% to 179.5% over the past 5 years.

Debt Coverage: 500031's debt is not well covered by operating cash flow (8.1%).

Interest Coverage: 500031's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet

Inventory Level: 500031 has a high level of physical assets or inventory.

Debt Coverage by Assets: 500031's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

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

0.84%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%0.6%markettop25%2.6%industryaverage0.4%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: 500031's dividend (0.84%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: 500031's dividend (0.84%) is low compared to the top 25% of dividend payers in the Indian market (2.55%).


Stability and Growth of Payments

Stable Dividend: 500031's dividend payments have been volatile in the past 10 years.

Growing Dividend: 500031's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (192.3%), 500031's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 500031's dividends in 3 years are forecast to be well covered by earnings (18.5% payout ratio).


Next Steps

Management

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

3.8yrs

Average board tenure


CEO

Shekhar Bajaj (71yo)

15.3yrs

Tenure

₹87,016,000

Compensation

Mr. Shekharkumar Ramkrishnaji Bajaj, also known as Shekhar, has been the Chief Executive of Bajaj Electricals Limited since 1980. Mr. Bajaj has been the Managing Director at Bajaj Electricals Limited since ...


CEO Compensation Analysis

Compensation vs Market: Shekhar 's total compensation ($USD1.22M) is above average for companies of similar size in the Indian market ($USD397.73K).

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


Board Members

NamePositionTenureCompensationOwnership
Shekharkumar Bajaj
Chairman15.3yrs₹87.02m6.82% 3.1b
Anuj Poddar
Executive Director3.8yrs₹31.33mno data
Rajivnayan Bajaj
Non-Executive Director0.8yrsno datano data
Madhur Kumar Bajaj
Non-Executive Director26.1yrs₹1.40m0.88% 408.4m
Harsh Goenka
Independent Non-Executive Director35.4yrs₹1.25mno data
Rajendra Singh
Independent Non-Executive Director10.8yrs₹1.45mno data
Indu Shahani
Independent Non-Executive Director13.6yrs₹2.80mno data
Pooja Bajaj
Non-Executive Director1.3yrs₹900.00k0.11% 52.8m
Siddharth Mehta
Independent Non-Executive Director3.8yrs₹2.30mno data
Munish Khetrapal
Independent Non-Executive Director1.3yrs₹850.00kno data

3.8yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 500031's board of directors are considered experienced (3.8 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 Electricals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bajaj Electricals Limited
  • Ticker: 500031
  • Exchange: BSE
  • Founded: 1938
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: ₹46.219b
  • Shares outstanding: 113.77m
  • Website: https://www.bajajelectricals.com

Location

  • Bajaj Electricals Limited
  • 51, Mahatma Gandhi Road
  • Fort
  • Mumbai
  • Maharashtra
  • 400023
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500031BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 2001
BAJAJELECNSEI (National Stock Exchange of India)YesEquity SharesININRNov 2001

Biography

Bajaj Electricals Limited engages in the consumer durables; and engineering, procurement, and construction businesses in India. The company operates through Consumer Products; and Engineering & Projects, and Others segments. It offers various appliances, including toasters, mixer-grinders, food processors, juicer mixer grinders, juicers, choppers and hand blenders, wet grinders, OTGs, microwave ovens, electric kettles, induction cookers, rice cookers, pressure cookers, gas stoves, non-electric kitchen aids, irons, storage water heaters, gas water heaters, instant water heaters, room heaters, air coolers, coffee makers, sandwich/pop-up toasters, hand mixers, electric cookers, and hair dryers. The company also provides various fans comprising ceiling, pedestal, table, wall, personal, domestic, and heavy duty exhaust fans, as well as air circulators. In addition, it offers lighting products, such as lamps, fluorescent lamps, compact fluorescent lamps, LED torches, LED lanterns, LED table lamps, consumer luminaires, and electrical accessories; and integrated building management systems. Further, the company is involved in the design, engineering, supply, execution, and commissioning of power distribution and transmission projects. It also generates wind energy. The company was formerly known as Radio Lamp Works Limited and changed its name to Bajaj Electricals Limited in October 1960. The company also exports its products. The company was founded in 1938 and is headquartered in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 12:45
End of Day Share Price2020/02/18 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.