BAJAJ ELECTRICALS

Maharashtra-based Bajaj Electricals Ltd (BSE: 500031) is an Indian

manufacturer of consumer electrical products. Lighting upgrades at the stadium
for the Commonwealth Games and the Bandra Worli Sea Link are two major
projects. It has 19 branch offices dispersed across the nation, along with a chain
of about 1000 distributors, 4000 authorized dealers, over 400,000 retail
locations, and over 282 Customer Care centers.

BAJAJ SHAREHOLDING:
Shareholding Pattern:
 INVESTING DECISIONS

NET CASH USED IN INVESTING ACTIVITIES

Year 202303 202203 202103 202003 201903 201803

Cash Flow Summary
Year 45.63 101.61 11.2 21.82 25.08 46.58
Net Cash From Operating Activities 935.83 659.67 627.41 -601.92 -102.87 436.95
Net Cash Used in Investing Activities -330.74 -110.46 -46.22 -126.85 36.09 -90.5
Net Cash Used in Financing Activities -532.9 -605.19 -490.78 718.15 63.52 -367.94
Net Inc/(Dec) in Cash and Cash Equivalent 72.19 -55.98 90.41 -10.62 -3.26 -21.5
Cash and Cash Equivalents at End of the Year 117.82 45.63 101.61 11.2 21.82 25.08

It can be seen from the above cash flow statement that the investment done by
BAJAJ ELECTRICALS in the last 5 years, deteriorated throughout the years
and remained in the negative. A company's underwhelming performance is
indicated by negative cash flow.

Net Cash Used in Investing Acti vities

100

50

0
202303 202203 202103 202003 201903 201803
-50

-100

-150

-200

-250

-300

-350

By seeing the graph, it can be said that the investment done by the company had
a little positive growth in 2019 from the negative value of Rs 90.5 crores in
2018. The improvement in 2019, was seen at Rs.36.09 crores, however, it
worsened in the later years. It hit its lowest in 2023 at Rs.-330.74 crores
RETURN ON EQUITY (ROE)

YEA
R ROE
2019 9%
2020 17%
2021 0%
2022 12%
2023 9%

 In 2019 the ROE was valued at 9%

 In 2020 the ROE was valued at 17%
 In 2021the ROE was valued at 0%
 In 2022 the ROE was valued at 12%
 In 2023 the ROE was valued at 9%

ROE
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
2019 2020 2021 2022 2023

ROE is commonly used as a metric to assess a company's profitability and

profitability ratio.
From the graph it can be said that ROE of the company had a growth of 8%
from 9% of 2019 to 17% in 2020. Although it is seen to be declining in
2021, increasing in 2022 and then decreasing at 9% again in 2023.
Decreasing ROE indicates the company is inefficient at gaining profits and
expanding shareholders.
RETURN ON INVESTMENT (ROI)

YEA
R ROI
2019 0.0812
2020 0.1219
-
2021 0.0001
2022 0.1089
2023 0.0815

 In 2019 the ROI was valued at 0.0812

 In 2020 the ROI was valued at 0.1219
 In 2021 the ROI was valued at -0.0001
 In 2022 the ROI was valued at 0.1089
 In 2023 the ROI was valued at 0.0815

0.14
ROI
0.12

0.1

0.08

0.06

0.04

0.02

0
2019 2020 2021 2022 2023
-0.02

This ratio is used to evaluate an investment's return or loss in relation to its

cost. It is useful for assessing the present or anticipated return on investment.
From the graph, it can be said that ROI of the company had growth from
2019 to 2020, being 0.1219 at 2020 and then decreasing at 2021 probably
because of the pandemic. It’s seen that it increases a little and then decreases
again at 2023.
ECONOMIC VALUE ADDED (EVA)

YEA
R EVA
2019 121.25
2020 165.46
2021 -0.81
2022 149.29
-
14820.8
2023 8

 In 2019 the EVA was valued at 121.25

 In 2020 the EVA was valued at 165.46
 In 2021 the EVA was valued at -0.81
 In 2022 the EVA was valued at 149.29
 In 2023 the EVA was valued at -14820.88

EVA
2000

0
2019 2020 2021 2022 2023
-2000

-4000

-6000

-8000

-10000

-12000

-14000

-16000

From the graph we can see that EVA of the company has grown slightly
from the year 2019 to 2020 but fell to a low of a negative Rs 0,81 crores in
2021. It showed a good growth of Rs.149.29 crores in 2022 but in 2023 goes
 down to negative Rs.14820 crores. The negative EVA suggests the company
is not generating value from the funds invested into the business.

BOND RATING

The short-term debt programme of Bajaj Electricals Ltd. has received a

"CRISIL A1+" rating from CRISIL Ratings (BEL).

Strong liquidity, a varied product offering, an improving financial risk profile,

and the company's dominant market position in India's consumer electronics
and durables industry are all criteria that go into the rating, which illustrates the
company's favourable business risk profile. Being a part of the Bajaj group,
which has previously assisted the company financially, benefits BEL as well.
These benefits are generally outweighed by the engineering, procurement, and
construction (EPC) segment's low return metrics, performance sensitivity to
shifting commodity prices, and escalating competition.

Consumer Products contributes 75% of the sales and the entire operating profit.
The performance of the segment is supported by strong brand equity across a
variety of products, including mixer grinders, water heaters, irons, fans, and
lighting. BEL is one of the top three competitors in this market in terms of
market share, and these goods generate more than 60% of its income. The
company is one of the top five players in the fans and lights market. It is sold
across the country by about 543 distributors and 220,000 retail stores.
 DIVIDEND DECISIONS

The dividend trend of last five year of the company is as follows:

Dividend Amount(Incl...
40

35

30

25

20

15

10

0
202303 202203 202103 202003 201903 201803

The dividend trend for last 5 year based on dividend amount of BAJAJ
ELECTRICALS limited can be analysed as follow:
  In 2018 the dividend amount was valued at 28.36
 In 2019 the dividend amount was valued at 35.72
 In 2020 the dividend amount was valued at 0.
 In 2021 the dividend amount was valued at 0
 In 2022 the dividend amount was valued at 35.84.
 In 2023 the dividend amount was valued at 34.46
The dividend amounts gradually increased upto 2019 after which it completely
dropped to 0 for two years and then increased again 2022 which can be
interpretated as a sign of good business performance.

DIVIDEND PER SHARE

Dividend Per Share

4

3.5

2.5

1.5

0.5

0
202303 202203 202103 202003 201903

The dividend trend for last 5 year based on Dividend Per Share (DPS) of Bajaj
Electricals limited can be analysed as follow:
 In 2019 the DPS was valued at 3.8
 In 2020 the DPS was valued at 0
 In 2021 the DPS was valued at 0
 In 2022 the DPS was valued at 3.6
  In 2023 the DPS was valued at 3

It can be seen that the the DPS decreases from 2019 to 3 in 2023. less
dividends indicate the business is operating not profitably in the current
market environment. A decrease in DPS also shows management is not
optimistic about future financial success of the organisation. However, it
dips to 0 in 2020 and 2021, probably because of the pandemic and then
increases again to 3 in 2023.

PAYOUT RATIO

Payout %
45
40
35
30
25
20
15
10
5
0
201700 201800 201900 202000 202100 202200 202300 202400

The dividend trend for last 5 year based on pay out % of Bajaj Electricals
limited can be analysed as follow:
 In 2018 the pay-out % was valued at 26.35%
 In 2019 the pay-out % was valued at 42.71%.
 In 2020 the pay-out % was valued at 0%.
 In 2021 the pay-out % was valued at 0%.
  In 2022 the pay-out % was valued at 21.45%.
 In 2023 the pay-out % was valued at 22.45%.
Throughout the years 2018-2019 the payout ratio has been inconsistent and then
plunged to 0 for the two years of 2020 and 2021. 2022 again saw a growth in
payout ratio at 21.45% and in 2023 shows at 22.45%.

Bajaj Electricals Limited did not buy back its share in the last 5 years. For the
past five years, the firm has regularly distributed dividends and has a strong
dividend track record.

 According to the income statement of the company, the total revenue

touched around Rs. 4470 in 2023; after decreasing from 4977 crores to
4573 crores.
 The total assets decreased throughout the last 5 years and landed a low of
Rs.3912 crores in 2023. were at their peak in 2019 (51.806 billion), and
then they began to decline. As of 2023, they are valued at 46.381 billion.
 The current value of total equity, at Rs 1784.60 crores, is the highest
during the previous five years, indicating a more stable financial position.

FINANCIAL DECISION
 FINANCIAL OVERVIEW

DEBT TO EQUITY

Debt- Equity Rati o

1.2

0.8

0.6

0.4

0.2

0
202303 202203 202103 202003 201903 201803

The debt-to-equity ratio is observed to be dropping from 2018 to 2019. This is a

good sign for the firm because a low ratio indicates that it is making better use
of its assets and borrowing less from the market, while it does grow from 0.75 to
1.14 in 2020. The debt-to-equity ratio does, however, start to reduce after 2021
when it falls below 0.21, which is advantageous for the business since a lower
D/E ratio is favored since it shows less debt on a company's balance sheet.

INTEREST COVERAGE RATIO

Interest Coverage Ratio

6

0
202303 202203 202103 202003 201903 201803

A debt and profitability metric termed the interest coverage ratio is used to
evaluate how easily a company can pay the interest on its current debt. The
interest cover ratio sees a peak in 2019 and then is hit by a decline. However, it
gradually rises by 2023 and reaches a high of 4.88. This suggests that BAJAJ
ELECTRICALS became more poised in paying its debts.
AVERAGE COST OF DEBT

Cost of debt
0.18
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
1 2 3 4 5
-0.02

The average cost of debt provides information on the total cost a company
incurs from its stakeholders, bonuses, etc. According to the graph above, we can
deduce that the company's cost of debt during the previous five years increases
initially, decreases for a year, and lastly increased in 2023. The cost of debt for
2023was the highest over the five years at 0.156. Companies that have a high
cost of debt are riskier than those that have a low cost of debt.