Bajaj Auto Limited

Industry Profile : Indian automobile industry is one of the largest and one of the most competitive in the world. In FY 15-16 production total was 23.96 million vehicle. The sector account for 7.1 per cent of GDP of India out of which 81% is Two wheeler market. Indian automotive aftermarket is estimated to grow at around 10-15 per cent to reach US$ 16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to generate up to US$ 300 billion in annual revenue by 2026, create 65 million additional jobs and contribute over 12 per cent to India’s Gross Domestic Product. Maruti in Car and Hero Moto corp is in Two wheeler market are leader. Passenger Vehicle holding 13% market. Maruti Suzuki expects Indian passenger car market to reach four million units by 2020, up from 1.97 million units in 2014-15. Mr Young Key Koo, Managing Director, Hyundai Motor India Ltd, has stated that India is a key market for the company, not only in terms of volumes but also as a hub of small products for exports to 92 countries. As many companies trying to increase revenue, rural Market is large for further growth. India is also being one of the leading exporter of automobiles and has strong export growth expectations for near future. In April-March 2016, overall automobile exports grew by 1.91 per cent. PV, Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 per cent, 16.97 per cent, and 0.97 per cent respectively in April-March 2016 over April-March 2015. The industry has attracted Foreign Direct Investment (FDI) worth US$ 15.79 billion during the period April 2000 to September 2016, according to data released by Department of Industrial Policy and Promotion (DIPP). Several automobile manufacturers, from global majors such as Audi to Indian companies such as Maruti Suzuki and Mahindra & Mahindra, are exploring the possibilities of introducing driverless self-driven cars for India.

Company Profile : The company is worlds sixth largest manufacturer of two wheeler. Bajaj Auto is India’s largest exporter of motorcycles and three-wheelers. Bajaj Auto’s exports accounted for approx. 35% of its total sales. 47% of its exports are made to Africa. Boxer, one of the leading product of Bajaj, motorcycle is the largest selling single brand in Africa. its two wheeler includes Avenger 220 Cruise Desert Gold Edition, Avenger 220 Cruise, Avenger 220 Street, Avenger 150 Street, CT100, CT100B, Dominar 400, Discover 125, Platina Comfortec, Pulsar 135LS, Pulsar 150, Pulsar 180, Pulsar 220F, Pulsar AS150, Pulsar NS200, Pulsar AS200, Pulsar NS160, Pulsar RS200, V15, V12. Three wheeler are RE Compact, RE Compact 4S, RE Optima, RE Maxima. the company also manufacture Car with name Bajaj Qute.

Shareholding pattern : Total 49 promoter entities hold 49.30% out of one is Bajaj alianz insurance. 1.83% held by mutual funds. 0.18% held by financial institutions. 5.67% held by insurance companies. 17.44% held by foreign investors. Remaining is held by public.

Financials and ratios :

 2010-112011-122012-132013-142014-152015-162016-17
Revenue16,974.7420,137.0220,792.7420,855.9222,194.4323,600.8622,988.65
Net Profit3,339.733,004.053,043.573,243.322,813.743,652.413,827.56
NPM20.3615.3815.2116.0913.0116.0917.58
EPS115.40103.80105.2011297126.20132.30
Book Value169.69208.77273.07332.03369.50424.77588.66
Dividend Per Share4045455050555
dividend payout34.6543.3442.7844.6051.4243.573.77
ROE68.0149.7238.5133.7526.3129.7122.46
ROCE61.9346.5336.4732.3725.3828.7121.74
ROA36.1127.1024.3921.9918.0823.3018.38
Debt to Equity 0.060.02 0.010.010.010.010.01
Asset Turnover177.32176.23160.25136.62138.87144.75104.57

Future prospectus : There were news about Bajaj Buying Ducati. It may or may not takes place but Triumph deal was sufficient important to tackle the challenge of Royale enfield. Triumph is largest British motorcycle manufacturer. So with technology of triumph and Manufacturing facilities of Bajaj chakan are going to be important.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter