Standalone Balance Sheet

Mar-18 Mar-17 Mar-16

Source of Funds
Total Share Capital 289.37 289.37 289.37

Equity Share Capital 289.37 289.37 289.37

Reserves 18,814.49 16,744.76 12,977.18
Net worth 19,103.86 17,034.13 13,266.55
Unsecured Loans 0 0 0
Total Debt 0 0 0
Total Liabilities 19,103.86 17,034.13 13,266.55
Application of Funds
Gross Block 4,449.14 4,443.93 4,390.25
Less: Acc. Depreciation 2,627.92 2,500.67 2,364.58
Net Block 1,821.22 1,943.26 2,025.67
Capital WIP 113.58 100.7 112.67
Investments 17,588.30 14,731.47 10,260.59
Inventories 742.58 728.38 719.07
S. Debtors 1,491.87 953.29 717.93
Cash & Bank Balance 778 293.68 859.52
Total Current Assets 3,012.45 1,975.35 2,296.52
Loans & Advances 1,283.94 2,064.11 1,791.05
Total CA, Loans & Adv 4,296.39 4,039.46 4,087.57
Current Liabilities 4,477.84 3,581.70 3,059.43
Provisions 237.79 199.06 160.52
Total CL & Provisions 4,715.63 3,780.76 3,219.95
Net Current Assets -419.24 258.7 867.62
Total Assets 19,103.86 17,034.13 13,266.55
Contingent Liabilities 2,248.64 2,019.79 1,980.12
Book Value (Rs. /Share) 660.19 588.67 458.47

Income
Sales Turnover 25,563.26 23,088.03 23,883.20
Excise Duty 398.34 1,321.35 1,296.68
Net Sales 25,164.92 21,766.68 22,586.52
Other Income 1,301.26 1,208.93 1,072.73
Stock Adjustment -9.68 43.68 -63.45
Total Income 26,456.50 23,019.29 23,595.80
Expenditure
Raw Materials 17,787.30 15,027.31 15,434.59
 Power & Fuel Cost 100.26 96.46 120.66
Employee Cost 1,069.09 997.07 917.12
Selling & Admin Exp 437.39 395.32 434.21
Misc. Expenses 977.77 871.85 834.55
Total Expenses 20,371.81 17,388.01 17,741.13
Operating Profit 4,783.43 4,422.35 4,781.94
PBDIT 6,084.69 5,631.28 5,854.67
Interest 1.31 1.4 1.05
PBDT 6,083.38 5,629.88 5,853.62
Depreciation 314.8 307.29 301.16
Profit Before Tax 5,768.58 5,322,59 5,546.46
PBT (Post Extra-ordinary Items) 5,768.58 5,322,59 5,546.46
Tax 1,714.47 1,508.07 1,617.65
Reported Net Profit 4,068.10 3,827.56 3,929.67
Total Value Addition 2,584.51 2,360.70 2,306.54
Equity Dividend 1,591.52 144.68 2,893.68
Corporate Dividend Tax 296.5 29.45 582.27
Per Share Data (Annualized)
Shares in issue (Lakhs) 2,893.67 2,893.67 2,893.67
Earnings Per Share (Rs) 140.59 132.27 135.8
Equity Dividend (%) 600 550 550
Book Value (Rs / Share) 660.19 588.67 458.47

DPS
DPS=(Equity Dividend
843.54 727.485 746.9
(%)*EPS)/100

Q1. As the chairman & managing director (CMD) of Bajaj Auto, I would rate the company on the basis of following Ra

1) Liquidity Ratios
Mar-18 Mar-17 Mar-16
Current Ratio=CA/CL 0.673 0.552 0.751
Quick Ratio=QA/CL 0.507 0.348 0.516
Cash ratio=Cash and Cash
Equivalents/CL 0.174 0.082 0.281

2) Leverage Ratios
Mar-18 Mar-17 Mar-16
Debt Ratio=TD/NA 0.000 0.000 0.000
Debt Equity Ratio=Total
Debt/Shareholder's Equity 0.000 0.000 0.000
 Debt to Capital Employed=Total
Debt/Capital Employed 0.000 0.000 0.000
Total Liabilities/Total Assets 0.214 0.200 0.223
Equity Multiplier=Total
Assets/Equity 76.021 65.216 49.973

3) Coverage Ratio
Mar-18 Mar-17 Mar-16
EBIT to Interest
Ratio=EBIT/Interest 4404.496 3802.850 5289.057
EBITDA to Interest
Ratio=EBITDA/Interest 4644.802 4022.343 5575.876
Debt to EBITDA Ratio=Total
Debt/EBITDA 0.000 0.000 0.000
DSCR=EBITDA/
(Interest+Repayment) 4644.802 4022.343 5575.876

4) Activity Ratios
Mar-18 Mar-17 Mar-16

Inventory Turnover=COGS/Average
Inventory 25.528 22.132 22.908
Days Of Inventory=360/Inventory
Turnover 14.102 16.266 15.715

5) Asset Turnover Ratio

Mar-18 Mar-17 Mar-16
Net Asset Turnover=Sales/Net
Assets 1.479 1.530 2.125
Total Asset Turnover=Sales/Total
Assets 1.338 1.355 1.800
Fixed Asset Turnover=Sales/Fixed
Assets 225.068 229.275 211.975
Current Assets
Turnover=Sales/Current Assets 8.486 11.688 10.400

Working Capital
Turnover=Sales/Net Current Assets -17.445 -14.373 -31.305

6) Profitability Ratios
Mar-18 Mar-17 Mar-16
Gross Profit Margin=GP/Sales 26% 30% 31%
 EBITDA Margin=EBITDA/Sales 24% 24% 25%
Operating Profit Margin(EBIT-
Profit)/Sales 17% 18% 18%

7) Valuation Ratios
Mar-18 Mar-17 Mar-16
P/E Ratio=Share Price/EPS 4.696 4.451 3.376
ROE=Net Income/Shareholder's
Equity 1.406 1.323 1.358

Q2. Instead of CMD,If I were a Shareholder in Bajaj Auto, then I would have evaluated Company's Performance as-

1) Earnings per share of the company has been increasing from 2014 to 2018 except for the year 2015 and 2017.
2) P/E ratio is also continiously increasing from year 2014 to 2018 except for the year 2016.
3) Capital Appreciation is observed here as the book value is continuously increasing from year 2014 to 2018.

Q3. Dupont Analysis for BAJAJ Auto

Mar-18 Mar-17 Mar-16
A) Net Income/Net Sales 0.162 0.176 0.174
B) Net Sales/Total Assets 5.857 5.389 5.526
C) Total Assets/Equity 1.485 1.396 1.413
ROE= (A*B*C) 1.406 1.323 1.358

Q4. Closing share price data (share price on 31st march) for each of the five years and their relevant ratios ar
Mar-18 Mar-17 Mar-16
1) P/E Ratio=Share Price/EPS 4.696 4.451 3.376
Price to Earnings Ratio or Price to Earnings Multiple is the ratio of share price of a stock to its earnings per share (EPS). The P/E ratio shows wha
Mar-18 Mar-17 Mar-16
ROE=Net Income/Shareholder's
2) Equity 1.406 1.323 1.358
The Return on Equity (ROE) Ratio is an accounting ratio of a company's net profit to its total shareholder equity. Return On Equity is a profitabilit
Mar-18 Mar-17 Mar-16
3) Dividend Yield=DPS/Share Price 1.278 1.236 1.629
Dividend Yield is calculated as the annual dividend per share divided by equity share price.Dividend yield is the financial ratio that measures the qu
 Mar-15 Mar-14

289.37 289.37

289.37 289.37
10,402.78 9,318.65
10,692.15 9,608.02
111.17 57.74
111.17 57.74
10,803.92 9,665.76

4,100.91 4,077.04
2,183.67 2,071.00
1,917.24 2,006.04
254.94 144.06
9,153.32 8,549.63
814.15 639.72
716.96 796.21
586.15 495.48
2,117.26 1,931.41
2,119.56 2,116.46
4,236.82 4,047.87
2,766.39 3,108.15
1,992.01 1,973.69
4,758.40 5,081.84
-579 -1,033.97
10,803.92 9,665.76
1,594.74 1,170.58
369.5 332.04

22,521.29 21,158.91
909.28 1,009.40
21,612.01 20,149.51
242.13 706.41
57.56 18.9
21,911.70 20,874.82

15,351.85 14,289.20
 114.7 106.16
897.3 726.58
0 0
1,189.17 940.73
17,553.02 16,062.67
4,116.55 4,105.74
4,358.68 4,812.15
6.49 0.49
4,352.19 4,811.66
267.4 179.61
4,084.79 4,632.05
4,084.79 4,632.05
1,271.05 1,388.73
2,813.74 3,243.32
2,201.17 1,773.47
1,446.84 1,446.84
287.73 245.89

2,893.67 2,893.67
97.24 112.08
500 500
369.5 332.04

486.2 560.4

any on the basis of following Ratios:

Mar-15 Mar-14
0.765 0.621
0.471 0.416

0.212 0.159

Mar-15 Mar-14
0.018 0.013

0.010 0.006
 0.076 0.061
0.349 0.399

47.154 44.032

Mar-15 Mar-14

630.398 9454.163

671.599 9820.714

0.026 0.012

37.045 82.640

Mar-15 Mar-14

20.099 23.638

17.911 15.229

Mar-15 Mar-14

2.534 2.762

2.085 2.189

88.340 146.876

10.637 10.955

-34.695 -17.981

Mar-15 Mar-14
27% 29%
 19% 23%

14% 16%

Mar-15 Mar-14
3.800 2.963

0.972 1.121

d Company's Performance as-

or the year 2015 and 2017.

rom year 2014 to 2018.

Mar-15 Mar-14
0.130 0.161
5.101 4.978
1.464 1.399
0.972 1.121

rs and their relevant ratios are as follows:

Mar-15 Mar-14
3.800 2.963
r share (EPS). The P/E ratio shows what the market is willing to pay today for a stock based on its past or future earnings.
Mar-15 Mar-14

0.972 1.121
r equity. Return On Equity is a profitability ratio that indicates how good the company is at making profits out of the equity capital.
Mar-15 Mar-14
1.316 1.688
is the financial ratio that measures the quantum of cash dividends paid out to shareholders relative to the market value per share.