NSEI:BAJAJELEC

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 60.92% per year

Risk Analysis

Interest payments are not well covered by earnings

Unstable dividend track record

Highly volatile share price over past 3 months

Profit margins (1.1%) are lower than last year (2.1%)



Snowflake Analysis

Average dividend payer with moderate growth potential.


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TTK Prestige

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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: BAJAJELEC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.6%

BAJAJELEC

1.5%

IN Consumer Durables

-1.3%

IN Market


1 Year Return

-30.9%

BAJAJELEC

16.2%

IN Consumer Durables

5.2%

IN Market

Return vs Industry: BAJAJELEC underperformed the Indian Consumer Durables industry which returned 16.2% over the past year.

Return vs Market: BAJAJELEC underperformed the Indian Market which returned 5.2% over the past year.


Shareholder returns

BAJAJELECIndustryMarket
7 Day-1.6%1.5%-1.3%
30 Day-0.9%0.4%-0.2%
90 Day-14.2%14.0%7.6%
1 Year-30.3%-30.9%16.8%16.2%7.2%5.2%
3 Year51.3%47.9%38.7%36.9%30.3%23.4%
5 Year51.2%44.8%101.6%96.5%39.3%26.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

47.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BAJAJELEC (₹322.05) is trading above our estimate of fair value (₹264.32)

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


Price To Earnings Ratio

PE vs Industry: BAJAJELEC is poor value based on its PE Ratio (47.2x) compared to the Consumer Durables industry average (17.8x).

PE vs Market: BAJAJELEC is poor value based on its PE Ratio (47.2x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: BAJAJELEC is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: BAJAJELEC is overvalued based on its PB Ratio (3.3x) 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 7 analysts?

60.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BAJAJELEC's forecast earnings growth (60.9% per year) is above the savings rate (6.5%).

Earnings vs Market: BAJAJELEC's earnings (60.9% per year) are forecast to grow faster than the Indian market (19.8% per year).

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

Revenue vs Market: BAJAJELEC's revenue (9.9% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: BAJAJELEC's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BAJAJELEC's Return on Equity is forecast to be low in 3 years time (19.2%).


Next Steps

Past Performance

How has Bajaj Electricals performed over the past 5 years?

37.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BAJAJELEC has high quality earnings.

Growing Profit Margin: BAJAJELEC's current net profit margins (1.1%) are lower than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: BAJAJELEC's earnings have grown significantly by 37.5% per year over the past 5 years.

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

Earnings vs Industry: BAJAJELEC had negative earnings growth (-43.4%) over the past year, making it difficult to compare to the Consumer Durables industry average (8.6%).


Return on Equity

High ROE: BAJAJELEC's Return on Equity (6.5%) 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: BAJAJELEC's short term assets (₹32.1B) exceed its short term liabilities (₹30.7B).

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


Debt to Equity History and Analysis

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

Reducing Debt: BAJAJELEC's debt to equity ratio has increased from 70% to 179.5% over the past 5 years.

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

Interest Coverage: BAJAJELEC's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet

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

Debt Coverage by Assets: BAJAJELEC'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?

1.09%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%0.6%markettop25%2.5%industryaverage0.5%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: BAJAJELEC's dividend (1.09%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: BAJAJELEC's dividend (1.09%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.3%), BAJAJELEC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BAJAJELEC's dividends in 3 years are forecast to be well covered by earnings (24% payout ratio).


Next Steps

Management

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

3.6yrs

Average board tenure


CEO

Shekhar Bajaj (71yo)

15.1yrs

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 ($USD1.22M) is above average for companies of similar size in the Indian market ($USD331.24K).

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


Board Age and Tenure

3.6yrs

Average Tenure

57.5yo

Average Age

Experienced Board: BAJAJELEC's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

Sell₹1,171,75728 May 19
Visweswaran Harikesavan
EntityIndividual
Shares2,080
Max Price₹583.55
Sell₹1,434,06622 May 19
Girish Bhave
EntityIndividual
Shares2,700
Max Price₹558.12
Sell₹1,134,00026 Apr 19
Srinivas Prabhu
EntityIndividual
Shares2,000
Max Price₹567.00
Sell₹229,50018 Apr 19
Ashim Datta
EntityIndividual
Shares450
Max Price₹510.00
Sell₹492,62518 Apr 19
Ashim Datta
EntityIndividual
Shares875
Max Price₹563.00
Buy₹502,58410 Apr 19
Salim Shaikh
EntityIndividual
Shares914
Max Price₹552.56
Sell₹1,081,16305 Apr 19
Ravi Grover
EntityIndividual
Shares2,000
Max Price₹545.00
Sell₹2,204,79901 Apr 19
Raj Goel
EntityIndividual
Shares4,000
Max Price₹556.94
Sell₹1,061,98501 Apr 19
Chetan Bhanushali
EntityIndividual
Shares2,000
Max Price₹538.00
Sell₹1,003,77329 Mar 19
Manoj Samal
EntityIndividual
Shares1,975
Max Price₹516.90
Sell₹1,067,80029 Mar 19
Abhay Takalakar
EntityIndividual
Shares2,000
Max Price₹533.90
Sell₹1,039,54125 Mar 19
Santosh Naik
EntityIndividual
Shares2,000
Max Price₹525.00
Sell₹1,053,44025 Mar 19
Raj Goel
EntityIndividual
Shares2,000
Max Price₹526.72
Buy₹155,78720 Mar 19
Visweswaran Harikesavan
EntityIndividual
Shares300
Max Price₹519.29
Sell₹259,70020 Mar 19
Visweswaran Harikesavan
EntityIndividual
Shares500
Max Price₹519.40
Sell₹507,01015 Mar 19
Raj Goel
EntityIndividual
Shares1,000
Max Price₹507.01
Sell₹143,830,53608 Mar 19
Nirajkumar Bajaj
EntityIndividual
Shares300,000
Max Price₹479.44
Buy₹144,169,45308 Mar 19
Bajaj Sevashram Pvt. Ltd.
EntityCompany
Shares300,000
Max Price₹480.56
Sell₹546,96707 Jan 19
Visweswaran Harikesavan
EntityIndividual
Shares1,084
Max Price₹509.34
Sell₹810,31303 Jan 19
Nandan Khadatkar
EntityIndividual
Shares1,600
Max Price₹513.00

Ownership Breakdown

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


Management Team

  • Shekhar Bajaj (71yo)

    Chairman

    • Tenure: 15.1yrs
    • Compensation: ₹87.02m
  • Mangesh Patil

    Executive VP of Legal & Taxation

    • Tenure: 0yrs
    • Compensation: ₹7.23m
  • Atul Sharma

    President of Human Resources & Administration

    • Tenure: 0yrs
  • Atul Pathak

    Executive Vice President of Branch Sales Support

    • Tenure: 0yrs
  • Anant Purandare

    President & CFO

    • Tenure: 0yrs
    • Compensation: ₹10.58m
  • Vaidyanathan Shankar

    Country Head - Alternate Channel Sales (CP) and EVP - Alternate Channel Sales (CP)

    • Tenure: 0yrs
  • Pradeep Patil

    International Head ­& VP of Exports

    • Tenure: 0yrs
  • Dileep Sharma

    Executive Vice President of Customer Care

    • Tenure: 0yrs
  • Beena Koshy

    Executive VP & International Head - Exports

    • Tenure: 0yrs
  • Anuj Poddar (45yo)

    Executive Director

    • Tenure: 3.6yrs
    • Compensation: ₹31.33m

Board Members

  • Shekhar Bajaj (71yo)

    Chairman

    • Tenure: 15.1yrs
    • Compensation: ₹87.02m
  • Rajiv Bajaj (53yo)

    Non-Executive Director

    • Tenure: 0.6yrs
  • Madhur Bajaj (67yo)

    Non-Executive Director

    • Tenure: 25.9yrs
    • Compensation: ₹1.40m
  • Harsh Goenka (62yo)

    Independent Non-Executive Director

    • Tenure: 35.3yrs
    • Compensation: ₹1.25m
  • Rajendra Singh (71yo)

    Independent Non-Executive Director

    • Tenure: 10.6yrs
    • Compensation: ₹1.45m
  • Indu Shahani (68yo)

    Independent Non-Executive Director

    • Tenure: 13.4yrs
    • Compensation: ₹2.80m
  • Pooja Bajaj (37yo)

    Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: ₹900.00k
  • Anuj Poddar (45yo)

    Executive Director

    • Tenure: 3.6yrs
    • Compensation: ₹31.33m
  • Siddharth Mehta (41yo)

    Independent Non-Executive Director

    • Tenure: 3.6yrs
    • Compensation: ₹2.30m
  • Munish Khetrapal (49yo)

    Independent Non-Executive Director

    • Tenure: 1.1yrs
    • Compensation: ₹850.00k

Company Information

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


Key Information

  • Name: Bajaj Electricals Limited
  • Ticker: BAJAJELEC
  • Exchange: NSEI
  • Founded: 1938
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: ₹32.986b
  • Shares outstanding: 102.46m
  • 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, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 12:48
End of Day Share Price2019/12/06 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.