FINANCIAL ANALYSIS OF BAJAJ AUTOMOB.

LTD

Presented By: Himanshu Singla(Roll No. 21) Ishant Goyal(Roll No. 37) Saurav Wadhwa(Roll No. 5) Vipin Bansal(Roll No. 25) Gaurav Sharma(Roll No. 8)

INDEX
BAJAJ AUTOMOB. LTD. Introduction History of Bajaj Automob. Awards goes to Automob. Founder of Bajaj Automob. Jamnalal Bajaj Key people of Bajaj Automob. Sales of Bajaj Automob. Capital Structure of Bajaj Automob. Performance evaluation through Ratios SWOT Analysis Future proposals

Bajaj Auto Limited

Type Traded as Industry Headquarters Key people Products Revenue Public

BSE: 532977 NSE: BAJAJ-AUTO BSE SENSEX Constituent

Automotive Pune, Maharashtra, India Rahul Bajaj (Chairman) Motorcycles, three-wheeler vehicles and cars 16,974 crore (US$3.39 billion) (2011)

Net income
Employees Parent Website

3,454 crore(US$689.07 million) (2011)

10,250 (2006-07) Bajaj Group www.bajajauto.com

History of Bajaj Automobiles

Founded in 1926 Jamnalal Bajaj, founder of the group

His son, Kamalnayan Bajaj, then 27, took over the reigns of business in 1942.
Present Chairman of the group, Rahul Bajaj, took charge of the business in 1965.

 The Bajaj Group is amongst the top 10 business houses in India. Worlds 4th largest 2 wheeler & 3 wheeler manufacturer. It is well known in Latin America, Africa, Middle East, South and South East Asia.

Awards of BAJAJ
Product Bajaj Pulsar 135 LS Award Bike of the Year 2010 Award Body BBC - TopGear Bajaj Pulsar Bajaj Pulsar 135 LS Hall of Pride Awards Bike of the Year CNBC - Overdrive Bike India

Bajaj Pulsar 135 LS

Bike India upto 150 cc

Bike India

Bajaj Avenger 220

2011 Mc of the year upto 250cc

NDTV Car & Bike Awards

Bajaj Pulsar 135 LS

"Golden Steering Wheel" for Executive Motorcycle Best Value for Money Vehicle of the Year

Auto Build

Discover 150 DTS-I

ET ZigWheels

Kawasaki Ninja 250R IMOTY 2010 Indian Motorcycle of the Year

Kawasaki Ninja 250R Business Standard Motoring 2010 Motoring Bike of the Year

Kawasaki Ninja 250R CNBC Overdrive 2010 Bike of the Year

Bajaj Auto NDTV Prot Car & Bike Awards 2010 Best Integrated Campaign 2 Wheeler

Founder of Bajaj.
Born 4 November 1884(1884-11-04) Kashi Ka Bas, near Sikar, British India Died 11 February 1942(1942-02-11) (aged 57) Wardha Occupation :-Social Worker, Political Leader, Freedom fighter, Industrialist Religion :-Hindu Parents :-Kaniram and Birdiba

RAHUL BAJAJ

CHAIRMAN OF BAJAJ GROUP

MADHUR BAJAJ

Vice Chairman & Whole-Time Director

MANAGEMENT TEAM

BUSINESS MODEL
1.
Growth Strategies

2.
Revenue Composition

3.
Market Segmentation

REVENUE COMPOSITION
Import (75%) Two Wheelers

(89%) Rs 14782.01
Export (25%)

Revenue

(Rs 16609)
Import(47%) Three Wheelers (11%) Rs 1826.99 Export (53%)

PRODUCT PORTFOLIO

Cost Composition

Market Share

SALES OF BAJAJ (Domestic+Exports)

Export Geographical Spread

STOCK VALUATION

Share Holding Pattern(2011)

PROMOTER

0.18 2.76

0.46 2.61

17.59

FREIND & ASS OF PROMOTERS

GDR'S

50.02 15.99

FII

PFI'S

MUTUAL FUNDS

10.31
NATIONALISED & OTHER BANK

0.08
NRI'S & OCB'S

OTHER

Share Holding Pattern(2010)

2010 Shareholding pattern
Nationalised & other banks 0% NRIs & OCBs 1%

Mutual Funds 3% Public Financial Institutions 3%

Others 14%

Foreign Institutional Investors 18%

Promoters 50%

Friends and associates of promoters 11%

GDRs 0%

COST OF EQUITY
7.93%
8%

RISK FREE RATE

RISK PREMIUM COST OF EQUITY= RF+BETA(RISK PREMIUM) KE( or expected rate of return)

16.11%

WACC
WACC = {(Kd*D)/(D+E} + {(Ke*E)/(D+E)} Kd = 0.52%, ke = 16.11% & D:E = 0.53:0.47

WACC = 0.52%*0.53 + 16.11%*0.47 = 7.78%

Dividend per share

45 40

40

40

40

35

30

25

22
20

Dividend per share

20

15

10

0 2007 2008 2009 2010 2011

LIQUIDITY RATIOS
0.9

0.88 0.84 0.76 0.84 0.8 0.73

0.8

0.69
0.7

0.71

0.64

0.6

0.55 CURRENT RATIO

QUICK RATIO

0.5

0.4

0.3

0.2

0.1

0 2007 2008 2009 2010 2011

Profitability ratios
140

69.67
120

59.19
100

80

39.71
60

35.36 14.23 20.03

20.97

19.8

40

12.66 12.09 8.32 10.32 12.29

2008

19.02
19.76

20

7.4 11.08 12.57

2009

21.19

14.11
0 2007

2010

2011

Operating profit ratio(%) Net profit ratio(%)

Gross profit ratio(%) Return on long term funds (%)

LEVERAGE RATIOS
6

4.85

3.5 Ratios 2.96 2.95 2.6 Long term Debt/Equity ratio Total Debt/Equity ratio Fixes Asset turnover ratio

0.84
1

0.84 0.29 0.28

0 2007 2008

0.83 0.7

0.45
0.45 0.06

0.03
2009 2010 2011

Earning Retention ratios

70

62.55
60

56.41 52.71

53.79 46.73

50

Ratios

40

Earning Retention ratios

30

20

10

0 2007 2008 2009 2010 2011

SWOT Analysis of BAJAJ Auto Ltd.

Excellent brand presence and in India. Extensive research and development focus and highly experienced player in the motorcycle segment. Widespread distribution network across India. Wide product range in terms of price, quality and categories. Featured in the Forbes Global brands list. Not a global brand despite high volume production. Lack of performance bikes like major international brands and sports bikes & cruisers

SWOT Analysis of BAJAJ Auto Ltd.

Cheaper variants for tapping more in the rural segment.
Premium sports bikes for urban areas. Constant growth in the twowheeler segment

Cheaper imports from countries like China.

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

REFERENCES
www.bajajauto.com www.moneycontrol.com Bajaj Automob. Annual report www.capitaline.com