Bajaj Auto is engaged in the business of development, manufacturing and distribution of

automobiles such as motorcycles, commercial vehicles etc. and parts thereof. The Company
sells its products in India as well as in various other global markets.

Snippet of Financial results for Q1 FY 21

 Volumes 443,103 units

 Turnover ~ 3,417 crore
 Revenue from operations ~ 3,079 crore
 Operating EBITDA ~ 441 crore
 Operating Profit ~ 376 crore
 Profit before tax ~ 682 crore
 Profit after tax ~ 528 crore
 Consolidated Profit after tax ~ 396 crore

Sales in the domestic motorcycle market was Nil for the entire month of April and
impacted for
a large part of May 2020. The month of June 2020 witnessed a decent recovery and
performance of
Bajaj Auto was better than the industry.
For Oil FY21:
Overall share in the domestic motorcycle market was 20.7% as against 18.5% in
FY20.
In the Mileage segment, Bajaj Auto sold over 110,000 units.
 CT sold over 32,000 units.
  Platina, including Platina 110H, sold over 45,000 units.
 Pulsar 125 sold over 32,000 units.
 Market share in this segment was 15.5% as against 14.3% in FY20.
In the Sports segment, Bajaj Auto continues to be a market leader.

Sold over 69,000 units in this segment.

 Pulsar 150 billed over 49,000 units.
Market share in this segment was 59.0% as against 44.7% in FY20.

In the Super Sports segment, Bajaj Auto sold nearly 6,000 units; market share was
8.8%.
 RS200 along with Dominar sold over 2,500 units.
 KTM and Husqvarna sold over 3,400 units.

Commercial Vehicles
Domestic market of Commercial Vehicles was severely impacted due to the pandemic.
Industry recorded a decline of 91 %. Being a market leader, Bajaj Auto was impacted the most.
Overall share in domestic market was 42.6% for Q1 I FY21.
RE brand, in the small three-wheeler passenger carrier segment, had a market share of 80% and
continues to be a market leader.
MAXIMA brand, in the big three-wheeler passenger carrier segment, had a market share of 27%.
MAXIMA brand, in the Goods carrier segment, had a market share of 34%.
There is a drop in market share, largely attributed to lack of commuting demand due to the pandemic
which led to a reduction of segment contribution of small three-wheeler passenger carrier
( -23% in 01 I FY21 as against -44% in FY20 ).

For Ql I FY21:
Resultant to the lockdown and other measures, revenue from operations recorded a decline
Of 60% to 3,079 crore.
With a sharp drop in revenue from operations, EBITDA also recorded a decline.
However, strict cost control measures helped us declare an EBITDA of 441 crore.
Fixed cost spends were controlled across all plants and locations.
In addition, marketing and advertisement spends were also curtailed.
For Qll FY21, EBITDA margin was 14.3%.

Shareholding pattern (%)

The promoters have increased their shareholding from past 3 years

No share is pledged by the promoter

FIIS are decreasing their shareholding from this year while DIIS are increasing the shareholding

Management of the company

Rahul Bajaj

Rahul Bajaj is the chairman of Bajaj Auto. He was born on June 30, 1938 in Kolkata. Rahul's grandfather Jamnalal Bajaj
founded the Bajaj Group in 1926 and his father Kamalnayan Bajaj succeeded him in 1942. Kamalnayan started the precursor to
Bajaj Auto. Within three years he expanded into new businesses, including cement, electrical appliances and scooters.
 
Rahul Bajaj graduated from St Stephen's College in Delhi in 1958  and also earned a degree in law from Bombay University.
Then he went on to pursue MBA from Harvard Business School in the US and became CEO of Bajaj Auto in 1968.

Rahul Bajaj became a part of his father's group as Deputy General Manager. He was in charge of key departments in the
company like marketing, accounts, purchase, and audit. etc. . After his father passed away in 1972, Rahul was appointed the
Managing Director of Bajaj Auto. Under his leadership the company witnessed tremendous growth. Rahul Bajaj built the firm in
the 1970s and '80s. He grew the company’s revenues to join the Billion-dollar club. It was through his initiative that Chetak and
Bajaj Super models rose to prominence in the Indian market. Originally based on Italian Vespa Sprint, Chetak was an
affordable means of transportation for millions of Indians for decades and is remembered as 'Hamara Bajaj'.
 Family Alliance

The company is part of Bajaj Group, controlled by the billionaire and three cousins -- Madhur, Niraj and
Shekhar -- through Bajaj Holdings & Investment

SWOT ANALYSIS
Strengths
 Promoters increasing shareholding
 High dividends, with rising dividend yields over last five years
 Annual Net Profits improving for last 2 years 
 Company is virtually debt free.
 Stock is providing a good dividend yield of 4.11%.
 Company has been maintaining a healthy dividend payout of 47.67%
 Company with Zero Promoter Pledge
 Bajaj Auto has a wide product range in terms of price, quality and categories
 Featured in the Forbes Global brands list
  It has more than 9000 people employed in the organization

Weakness
 Declining Net Cash Flow : Company not able to generate net cash
 Decline in Net Profit with falling Profit Margin (QoQ)
 The company has delivered a poor growth of 6.74% over past five years
 Bajaj Auto is still not a global brand despite high volume production
 Lack of performance bikes like major international brands and sports bikes &
cruisers
Opportunities
 Bajaj Auto says its $2,500 car, which it is building with Renault and Nissan Motor, will aim at a fuel-
efficiency of 30 km per litre

 Cheaper variants for tapping more in the rural segment

 Premium sports bikes for urban areas

 Constant growth in the two-wheeler segment

Threats
 Entry of international brands
 Other motorcycle players have a strong brand presence

 Increasing Trend in Non-Core Income

Competitive analysis

Bajaj auto is the leader in its segment and has been part
of nifty 50 since its inception
Bajaj auto growth since inception

Hero motocorp growth since inception

Tvs motors growth since inception

Conclusion
 Bajaj Auto is planning to launch 6-9 motorcycles in the next 12 months, across its
domestic and global markets, said Rakesh Sharma, Executive Director, Bajaj Auto. By
the first half of this month, the company also plans to fully transition its motorcycles
to BS-6 models
 Bajaj saw a massive decline of 64% in the first quarterly sales
 Bajaj rural sales have shown a positive recovery, driven by  healthy Rabi
procurement and strong progress of Kharif sowing
 The credit rating agency, Moody’s earlier in May said it expects to see
global auto sales fall by 20% in 2020
The profit and EPS is declining quarter on quarter but we
do expect a better growth estimates in 2021