Consolidated Balance Sheet for Bajaj Auto Limited in Crore

CHECK 0 0

Particular's 2019 2020

ASSETS
Non-current assets
Property, plant and equipment 1,689 1,602
Capital work-in-progress 12 47
Investment property 56 54
Intangible assets 20 43
Intangible assets under Development 36 14
Investments in associate 2,666 2,951
Financial assets
Investments 16,360 14,183
Trade receivables - -
Loans 32 32
Other financial assets 0 3
Income tax assets (net) 584 715
Other non-current assets 307 251
Total Non-current Assets 21,761 19,894

Current assets
Inventories 962 1,064
Financial assets
Investments 1,576 2,780
Trade receivables 2,560 1,725
Cash and cash 916 285
Other bank balances 17 31
Loans 6 6
Other financial 113 88
Other current assets 923 637
Total Current Assets 7,073 6,616
TOTAL ASSETS 28,834 26,510

EQUITY AND LIABILITIES

EQUITY
Equity share capital 289 289
Other equity 22,944 21,373
Equity attributable to owners of the Company 23,234 21,662
Non-controlling interest 0.01 0.01
Total equity 23,234 21,662

LIABILITIES
Non-Current Liabilities
Financial liabilities
Sales tax deferral 125 126
Provisions 15 81
Deferred tax liabilities (net) 543 346
Government grant 44 41
Other non-current liabilities 1 1
Total Non-current Liabilities 727 595

Current liabilities
Financial liabilities
Trade payables
Total outstanding dues of micro enterprises and small enterprises 3 14
Total outstanding dues of creditors other than micro enterprises and small enterprises 3,784 3,186
Other financial liabilities 371 548
Other current liabilities 557 329
Provisions 141 158
Government grant 3 3
Current tax liabilities (net) 16 16
Total Current Liabilities 4,874 4,253
TOTAL LIABILITIES 5,601 4,848

TOTAL EQUITY AND LIABILITIES 28,834 26,510

 0 0 0 0 0 0 0 0

2021 2022 2023 2024 2025 2026 2027 2028

1,568 1,760 2,762 3,774 5,111 6,875 9,201 12,267

16 77 85 85 85 85 85 85
52 51 50 50 50 50 50 50
47 25 31 31 31 31 31 31

3,289 4,064 4,884 4,884 4,884 4,884 4,884 4,884

13,370 17,601 16,718 16,718 16,718 16,718 16,718 16,718

- - - - - - - -
5 5 2 2 2 2 2 2
27 61 34 34 34 34 34 34
715 749 812 812 812 812 812 812
325 352 109 109 109 109 109 109
19,414 24,746 25,486 26,498 27,835 29,599 31,926 34,992

1,494 1,231 1,564 1,850 2,424 3,177 4,167 5,469

8,028 4,969 4,581 4,581 4,581 4,581 4,581 4,581

2,717 1,516 1,752 2,163 2,833 3,713 4,870 6,392
517 934 242 5,834 13,189 22,724 35,153 51,419
22 24 449 449 449 449 449 449
6 4 4 4 4 4 4 4
224 596 473 473 473 473 473 473
1,181 1,091 586 586 586 586 586 586
14,188 10,366 9,650 15,940 24,538 35,706 50,283 69,373
33,602 35,111 35,136 42,438 52,373 65,306 82,208 104,365

289 289 283 283 283 283 283 283

26,984 29,570 29,079 35,681 44,209 55,293 69,765 88,726
27,273 29,860 29,362 35,964 44,492 55,576 70,048 89,009
0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
27,273 29,860 29,362 35,964 44,492 55,576 70,048 89,009

121 123 124 124 124 124 124 124

2 1 1 1 1 1 1 1
 522 403 345 345 345 345 345 345
39 36 33 33 33 33 33 33
1 0 0 0 0 0 0 0
685 563 504 504 504 504 504 504

121 151 278 278 278 278 278 278

4,453 3,482 3,843 4,542 5,949 7,797 10,228 13,424
407 397 464 464 464 464 464 464
483 479 493 493 493 493 493 493
152 154 166 166 166 166 166 166
3 3 3 3 3 3 3 3
24 24 24 24 24 24 24 24
5,644 4,689 5,271 5,970 7,376 9,225 11,655 14,852
6,328 5,252 5,775 6,474 7,881 9,729 12,160 15,356

33,602 35,111 35,136 42,438 52,373 65,305 82,208 104,365

Consolidated Statement of Profit and Loss for Bajaj Auto Limited in Crore

Particular's 2,019 2020

Revenue from operations 30,250 29,919
Other income 1,555 1,525
Total income 31,805 31,443

Expenses:
Cost of raw materials and components consumed 20,301 19,485
Purchase of traded goods 1,579 1,587
Changes in inventories of finished goods, work-in-progress and traded goods -56 -63
Employee benefits expense 1,257 1,391
Finance costs 4 3
Depreciation and amortisation expense 266 246.43
Other expenses 2,220 2,454
Expenses, included in above items, capitalised -30 -30
Total expenses 25,541 25,073

Share of profits of associate 350 322

Profit before exceptional items and tax 6,614 6,692

Exceptional items -342 0

Profit Before Tax 6,956 6,692

Tax expense
Current tax 1,819 1,547
Deferred tax 209 -67
Total tax expense 2,028 1,480

Profit after Tax 4,928 5,212

 2021 2022 2023 2024 2025 2026 2027 2028
27,741 33,145 36,455
1,276 1,284 1,188
29,018 34,429 37,643 0 0 0 0 0

18,308 22,170 24,073

1,521 1,972 2,148
-219 188 -100
1,288 1,363 1,484
7 9 40
259 270 286
1,931 2,215 2,427
-12 -13 -28
23,082 28,173 30,330 0 0 0 0 0

306 580 529

6,241 6,835 7,842 0 0 0 0 0

0 -817 0

6,241 7,652 7,842 0 0 0 0 0

1,348 1,667 1,855

36 -181 -73
1,384 1,486 1,782

4,857 6,166 6,060 0.00 0.00 0.00 0.00 0.00

Consolidated Cash flow statement for Bajaj Auto Limited in Crore

Particulars
A.Cash flows from operating activities
Profit before tax
Adjustments to reconcile profit before tax to net cash flows:
Add:
i) Depreciation and amortisation
ii) Loss on property, plant and equipment sold,demolished, discarded and scrapped
iii) Provision for doubtful debts and advances
iv) Share based payment to employees
v) Exchange loss/(gain) on cash and cash equivalents
vi) Exchange loss/(gain) on trade receivables
vii) Exchange loss/(gain) on import payables
viii) Interest adjustment on Government grant
ix) Interest expense

Operating profit before working capital changes

Less:
i) Investment income included in above:
Interest income on fixed income securities
Interest income on fixed deposits
Interest income on exchange traded funds
Interest income on fixed maturity plans
Profit on sale of other investments, net
Gain on valuation and realisation of mutual funds measured at fair value through profit or loss
Dividend income on other strategic investments
Amortisation of premium/discount on acquisition of fixed income securities

ii) Share of profits of associate

iii)Provision for doubtful debts and advances written back (net)
iv)Liabilities no longer required written-back
v)Government grants
vi) Exceptional item - NCCD reversal
vii) Surplus on sale of property, plant and equipment

Change in assets and liabilities

i) (Increase)/decrease in inventories
ii) (Increase)/decrease in trade receivables
iii) (Increase)/decrease in loans and other assets
iv) Increase/(decrease) in liabilities and provisions

Annuity payments (net) to VRS optees

Net cash from operating activities before income tax
Income-tax refund/(paid) for earlier years (net)
Income tax paid
Net cash flow from/(used in) operating activities

B.Cash flows from investing activities:

i) Sale of investments
ii) Purchase of investments
iii) Sale/(purchase) of liquid mutual funds, etc., net
iv) Investment in treasury shares by ESOP trust
v) (Increase)/decrease in other bank balances
vi) Purchase of property, plant and equipment (including advances)
vii) Sale proceeds of property, plant and equipment
viii) Capital expenditure on development of technical know-how
ix) Investment income
Interest income on fixed income securities
Interest income on fixed deposits
Dividend income on other strategic investments
(Increase)/decrease in interest receivable

Net cash flow from/(used in) investing activities

C.Cash flows from financing activities:

i) Interest expense
ii)Deferral of sales tax deferral liability due to assessment
iii) Equity share buy–back (incl. tax thereon)
iv) Transaction costs on issue of shares
v) Dividend, including interim dividend paid
vi) Corporate dividend tax paid

Net cash flow from/(used in) financing activities

IV. Change in foreign currency translation arising on consolidation

Net increase/(decrease) in cash and cash equivalents [A+B+C]

Cash and cash equivalents at the beginning of the year
Add/(Less): Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the year
 2019 2020 2021 2022 2023 2024 2025 2026

6,956 6,692 6,241 7,652 7,842 6,602 8,528 11,084

266 246 259 270 286 523 673 871

8 14 13 9 14
1 22 16 -4 5
10 7 15 30
27 -2 1 -4 11
3 -15 -6 2 3
0 -2 0 4 0
1 1 1 1 1
4 2 5 7 38

7,265 6,968 6,539 7,952 8,230 7,125 9,202 11,955

24 17 66 275 307
29 18 36 64
0 77 205 345
830 904 843 389 40
2 20 16 75 0
361 463 254 224 178
25 0 46 47
48 18 -6 -18 -2

350 322 306 580 529

1 1 0
90
3 3 3 3 3
342 817 0
55 5 2 22 112

2,105 1,805 1,578 2,653 1,621 0 0 0

-219 -102 -430 263 -333 -287 -573 -753

-1,070 829 -1,002 1,203 -243 -410 -670 -880
-167 399 -552 77 588
754 -759 1,484 -943 576 699 1,407 1,849
-703 366 -501 599 587 2 164 215
-6 0 0 0
 4,451 5,528 4,460 5,899 7,196 7,127 9,365 12,170
-10
-1,954 -1,678 -1,340 -1,702 -1,919
2,487 3,850 3,120 4,197 5,277 7,127 9,365 12,170

9,140 5,179 3,556 11,527 10,793

-9,601 -3,518 -5,888 -11,084 -9,384
215 167 -351 -209 760
-27 -6 -37 6
0 -14 9 -2 -424
-164 -283 -244 -551 -1,074 -1,535 -2,010 -2,635
76 17 6 33 137
-21 -14 -16 – -36

24 17 66 275 307
29 18 36 64
25 0 46 47
-8 -23 -17 -114 5

-338 1,556 -2,868 -81 1,200 -1,535 -2,010 -2,635

-4 -2 -5 -7 -38
3 0 -5
– -3,094
– -2
-1,736 -5,195 -9 -4,049 -4,047
-337 -1,049 0 0 0

-2,074 -6,247 -20 -4,056 -7,181 0 0 0

93 208 0 354 23

167 -632 233 413 -681 5,592 7,355 9,535

776 916 285 517 934 242 5,834 13,189
-27 2 -1 4 -11
916 285 517 934 242 5,834 13,189 22,724
 2027 2028

14,472 18,960

1,130 1,471

15,603 20,431

0 0

-990 -1,302
-1,157 -1,522

2,430 3,197
283 372
15,886 20,803

15,886 20,803

-3,457 -4,537

-3,457 -4,537

0 0

12,429 16,266
22,724 35,153

35,153 51,419
Revenue Break-Up
Particular's 2023 FY2024F FY2025F FY2026F FY2027F
Two-wheelers 88.0%
Commercial vehicles 12.0%

Two-wheelers 3,452,226 3,970,060 4,565,569 5,250,404 6,037,965

YoY 15.0% 15.0% 15.0% 15.0%

Commercial vehicles 470,758 494,296 519,011 544,962 572,210

YoY 5.0% 5.0% 5.0% 5.0%

Total Sales in Volumes 3,922,984 4,464,356 5,084,580 5,795,366 6,610,175

YoY 13.8% 13.9% 14.0% 14.1%
 FY2028F

6,943,660
15.0%

600,821
5.0%

7,544,481
14.1%
Formatted Profit&Loss
Particular's 2019 2020 2021 2022 2023 2024
Volume 3,922,984 4,464,356
YOY 13.8%

Average Price 98,235

YOY 15%
Sales 30,250 29,919 27,741 33,145 36,455 43,856
YoY -1.1% -7.3% 19.5% 10.0% 20.3%

Direct Expenes
COGS 21,824 21,008 19,610 24,330 26,121 30,699
As % of Sales 72.1% 70.2% 70.7% 73.4% 71.7% 70.0%

Gross Profit 8,426 8,910 8,131 8,815 10,334 13,157

Gross Profit Margin 27.9% 29.8% 29.3% 26.6% 28.3% 30.0%

Indirect Expenses
Employee Expenses 1,257 1,391 1,288 1,363 1,484 1,633
YoY 10.7% -7.4% 5.8% 8.9% 10.0%

Other Expenses 2,220 2,454 1,931 2,215 2,427 3,508

As % of Sales 7.3% 8.2% 7.0% 6.7% 6.7% 8.0%

EBITDA 4,949 5,066 4,912 5,237 6,423 8,015

EBITDA Margins 16.4% 16.9% 17.7% 15.8% 17.6% 18.3%

Depreciation and Amortisation 266 246 259 270 286 523

EBIT 4,683 4,819 4,653 4,967 6,137 7,493

EBIT Margins 15.5% 16.1% 16.8% 15.0% 16.8% 17.1%

Interest 4 3 7 9 40 40
YoY -29.5% 110.8% 30.0% 356.2% 0.0%
Other Income 1,555 1,525 1,276 1,284 1,188 1,188
Share of profits of associate 350 322 306 580 529 529
Exceptional items -342 0 0 -817 0

PBT 6,241 6,662 6,229 6,005 7,814 9,170

PBT Margins 20.6% 22.3% 22.5% 18.1% 21.4% 20.9%

Tax Expenses 2,028 1,480 1,384 1,486 1,782 2,568

Effective Tax Rate 32.5% 22.2% 22.2% 24.7% 22.8% 28.0%

PAT 4,213 5,182 4,845 4,520 6,032 6,602

PAT Margins 13.9% 17.3% 17.5% 13.6% 16.5% 15.1%
YoY 23.0% -6.5% -6.7% 33.5% 9.4%
FV 10.00 10.00 10.00 10.00 10.00 10.00
Number of shares 28.94 28.94 28.94 28.94 28.30 28.30

EPS 146 179 167 156 213 233

YoY 23.0% -6.5% -6.7% 36.5% 9.4%

Valuation
Forward PE
Average PE

Target Price as per PE

Current Price
Upside / Downside

Forward Ev/EBITDA

Average EV/EBITDA
EV 245,669
Less :Debt 124
Add Cash 242
Equity Value 245,551

Target Price as per EV/EBITDA (

Value per share)
Upside/ downside
 2025 2026 2027 2028
5,084,580 5,795,366 6,610,175 7,544,481
13.9% 14.0% 14.1% 14.1%

112,971 129,916 149,404 171,814

15.0% 15.0% 15.0% 15.0%
57,441 75,291 98,759 129,625
31.0% 31.1% 31.2% 31.3%

40,209 52,704 69,131 90,738

70.0% 70.0% 70.0% 70.0%

17,232 22,587 29,628 38,888

30.0% 30.0% 30.0% 30.0%

1,796 1,976 2,173 2,391

10.0% 10.0% 10.0% 10.0%

4,595 6,023 7,901 10,370

8.0% 8.0% 8.0% 8.0%

10,841 14,588 19,553 26,127

18.9% 19.4% 19.8% 20.2%

673 871 1,130 1,471

10,167 13,717 18,423 24,656

17.7% 18.2% 18.7% 19.0%

40 40 40 40
0.0% 0.0% 0.0% 0.0%
1,188 1,188 1,188 1,188
529 529 529 529

11,845 15,394 20,100 26,333

20.6% 20.4% 20.4% 20.3%

3,317 4,310 5,628 7,373

28.0% 28.0% 28.0% 28.0%

8,528 11,084 14,472 18,960

14.8% 14.7% 14.7% 14.6%
29.2% 30.0% 30.6% 31.0%
 10.00 10.00 10.00 10.00
28.30 28.30 28.30 28.30

301 392 511 670

29.2% 30.0% 30.6% 31.0%

29.18
19.4

5847
8,795
-33.5%

22.7

14.5
157,191
124
242
157,309

5559
-36.8%
Other Equity Note
Particular's 2019 2020 2021 2022 2023 2024 2025 2026
Opening Balance 0 22,944 21,373 26,984 29,570 29,079 35,681 44,209
Add:Profit For the Year 4,213 5,182 4,845 4,520 6,032 6,602 8,528 11,084
Less:Dividend Paid -1,736 -5,195 -9 -4,049 -4,047 0 0 0
Closing Balance 22,944 21,373 26,984 29,570 29,079 35,681 44,209 55,293

Dividend Payout Ratio -41.2% -100.3% -0.2% -89.6% -67.1% 0.0% 0.0% 0.0%
 2027 2028
55,293 69,765
14,472 18,960
0 0
69,765 88,726

0.0% 0.0%
PPE Note
Particulars 2022 2023 2024 2025 2026
Opening Balance 4,182 4,469 5,434 6,969 8,979
Add:Capex 459 1,296 1,535 2,010 2,635
Less:Sold
Closing balance 4,469 5,434 6,969 8,979 11,614

Depreciation Schedule
Opening Balance 2,614 2,709 2,672 3,195 3,868
Add:Depreciation for The Year 245 252 523 673 871
Adjustment
Closing Balance/Accumulation 2,709 2,672 3,195 3,868 4,739

Net Assets (Gross-Accumulation Depreciation) 1,760 2,762 3,774 5,111 6,875

1 1 1 1 1

Depreciation Rate 5.5% 4.6% 7.5% 7.5% 7.5%

Capex as % of Sales 1.4% 3.6% 3.5% 3.5% 3.5%

 2027 2028
11,614 15,071
3,457 4,537

15,071 19,608

4,739 5,870
1,130 1,471

5,870 7,340

9,201 12,267
1 TRUE

7.5% 7.5%

3.5% 3.5%
Working Capital Note
Particulars 2019 2020 2021 2022 2023 2024 2025 2026

Sales 30,250 29,919 27,741 33,145 36,455 43,856 57,441 75,291

COGS 21,824 21,008 19,610 24,330 26,121 30,699 40,209 52,704
COGS 21,824 21,008 19,610 24,330 26,121 30,699 40,209 52,704

Receivable 2,560 1,725 2,717 1,516 1,752 2,163 2,833 3,713

Inventories 962 1,064 1,494 1,231 1,564 1,850 2,424 3,177
Payables 3,784 3,186 4,453 3,482 3,843 4,542 5,949 7,797

Days of Receivables 31 21 36 17 18 18 18 18
Days of Inventories 16 18 28 18 22 22 22 22
Days of Payables 63 55 83 52 54 54 54 54

Cash Conversion Cycle -16 -16 -19 -17 -14 -14 -14 -14
 2027 2028

98,759 129,625
69,131 90,738
69,131 90,738

4,870 6,392
4,167 5,469
10,228 13,424

18 18
22 22
54 54

-14 -14
Free Cash Flow To Firm
Particulars 2019 2020 2021 2022 2023

EBIT*(1-Tax Rate) 3,162 3,748 3,619 3,738 4,738

Add:Depreciation 266 246 259 270 286
Changes in working capital -703 366 -501 599 587
Less:Cap ex -164 -283 -244 -551 -1,074
FCFF 2,561 4,078 3,134 4,056 4,536
Terminal Value
Total Cash Flow

Present Value factor

Present Value
Value of the Firm

Present Value of all cash flows = Enterprise Value 286,254

Less: Debt 124
Add: Cash 242
Equity Value 286,371

Number of shares 28
Intrinsic Value (Per share Value) 10,121
Current Price 8,795
15.1%

WACC 9.9%
Growth 6%
 2024 2025 2026 2027 2028

5,395 7,320 9,876 13,265 17,752

523 673 871 1,130 1,471
2 164 215 283 372
-1,535 -2,010 -2,635 -3,457 -4,537
4,384 6,147 8,327 11,221 15,058
407,300
4,384 6,147 8,327 11,221 422,359
1 2 3 4 5
0.91 0.83 0.75 0.68 0.62
3,989 5,088 6,270 7,687 9,385 253,836
286,254

WACC
10121 9.9% 10% 11% 12% 13%
6%
7%
TH

8%
OW

9%
GR

10% #DIV/0!
11% #DIV/0!
14%
WACC NOTE
Particulars 2019 2020 2021 2022 2023 FY2024E
Total Equity (Including Minority interest) 23,234 21,662 27,273 29,860 29,362 35,964
Total Debt 125 126 121 123 124 124
Interest Expenses 4 3 7 9 40 40
Cost of Debt (Interest Rate) 3.6% 2.5% 5.5% 7.1% 31.8% 32.0%
Tax Rate (25%) 32.5% 22.2% 22.2% 24.7% 22.8% 28.0%
ROE 18.1% 23.9% 17.8% 15.1% 20.5% 18.4%

Interest Coverage 1045.4 1525.1 698.7 573.5 155.3 189.6

After Tax Cost of Debt 2.4% 2.0% 4.3% 5.3% 24.6% 23.0%
Debt/Equity 0.01 0.01 0.004 0.004 0.004 0.003

Weights
Equity 99% 99% 100% 100% 100% 100%
Debt 1% 1% 0% 0% 0% 0%

CAPM
Rf 7%
B 0.57
RM-RF 5.0%
Cost of Equity 9.9%

WACC 9.9%