INTRODUCTION
FINANCIAL STATEMENTS RATIOS

CASH FLOW
FUND FLOW

COST OF CAPITAL
LEVERAGE

FUTURE GROWTH
STOCK MARKET ANALYSIS RECOMMEDATIONS/ COMMENTS

Middle East and South East Asia The present Chairman of the group. Waluj (Aurangabad) and Pantnagar in Uttaranchal. Under his leadership. Africa. its product portfolio has expanded and the brand has found a global market. 1945 as M/s Bachraj Trading Corporation Private Limited.wheeler manufacturer and the Bajaj brand is well-known across several countries in Latin America. Maharashtra. took charge of the business in 1965. It is based in Pune. . Bajaj Auto. the turnover of the Bajaj Auto the flagship company has gone up from INR. the company has successfully changed its image from a scooter manufacturer to a two-wheeler manufacturer. is ranked as the world's fourth largest two. Over the last decade. Bajaj Auto came into existence on November 29.72 million to INR.and three. 120 billion. with plants in Chakan (Pune).Bajaj Auto is a major Indian automobile manufacturer started by a Rajasthani merchant by Jamnalal Bajaj at Rajasthan in the 1930s. Rahul Bajaj.

884.33 82.62 4.171.79 17.73 .Particulars INCOME : Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income EXPENDITURE : Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Less: Pre-operative Expenses Capitalised Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Tax Fringe Benefit tax Deferred Tax Reported Net Profit Mar’12 (In cr) Mar’12 (In cr) 20.412.231.35 11.037.14 4.76 19.69 4.17 14.403.41 16.02 3.004.43 16.24 4.84 4.470.2 16.398.75 980 0 28.65 344.97 553.194.39 225.339.66 13.196.30 86.73 3.17 1.59 122.74 946.347.72 49.64 933.331.28 1.79 145.003.85 515.61 476.475.528.07 4.98 608.15 20.472.03 22.78 165.05 17.27 702.87 265.026.39 0 18.69 101.880.23 1.04 94.

000 crore mark 2. Company should curtail expenditure.597 crores. . 6. This is mainly due to rise in expenses. Over all Expenses has to be reduced and company should take advantage of large scale production. 8.1. This means company has speant less on Marketing activities which could have resulted in more sales. Turnover crossed the Rs 20. Record sales of 4. On the whole turnover has increased by 3000 crores and Expenditure has been increased by 2. Direct expenditure has increased by Selling & Distribution is decreased. This is the reased why even after increase in volume of sales the Operating profit has increased just by 478 crores. Depereciation has been increased due to increase in fixed assets 9. Even after rise in sales the PBDIT has gone down by 284 crores. Other Operating Income is reduced by 762 crores 5. Net sales and other operating income grew by 19% to Rs 19k crore 3.35 million units — with over a million units being sold in each of the four quarters 4. 7.

548.445.37 0 0 5.49 1.89 5.15 4.61 343.550.07 -1.34 4.16 1.501.Particulars Sources Of Funds Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities Application Of Funds Gross Block Less: Accum.48 97.04 5.37 289.77 Mar '11 (In cr) 289.208.19 0 2.66 401.66 169.55 3.07 0 97.35 3.53 2.72 6.33 1.53 301.69 .85 0 4.138.511.42 -599.925.81 678.37 959.624.67 208.37 0 0 4.914.55 1.2 446.48 6.751.28 362.15 5.174.235.88 0 5.53 423.395.37 3.62 325.041.100.22 1.70 0 6.76 155.795.912.891. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA.82 1.45 1.425.94 1.065.358.191.22 23.36 4.744.620.482.45 1.235.138.20 547.02 0 6.49 3.925.882.37 289.71 149. Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions Net Current Assets Miscellaneous Expenses Total Assets Contingent Liabilities Book Value (Rs) Mar '12 (In cr) 289.910.40 0 2.

This is still high. This is good. . Gross Block (Fixed Assets) are increased by 31 crores. Paying-off creditors may bring back Current assets to positive. Secured Loans are completely written-off & Unsecured which is interest free is also partially paid-off. Loans & Advances are reduced by 2147 crores. Higher the debtor higher the requirement of working capital as liquidity goes low. It is better to pay-off the liabilities. Entire Share Capital is Equity Share Capital which means compay will have to pay dividend depending only on profitability 2. Instead of giving loans company can look at investing. This is a good sign 11. This is our asset but may lead to baddets if not recovered. Cash & Bank have been increased by 291 crores. debentures and outside loan. 13. This is lucrative for shareholders 4. This reduces dependancy on outsiders. This is perhaps due to the payment received from Debtors.131 crores. Investments have been increased by 88 crores. Inventories has increased by 131 crores. It has increased by 24% considerering last year's inventories 9. Total Current assets are increased by 483 crores. Debtors are increased by 60 crores. The loan which is pending is interest free. This is not a good picture. Capital Work in Progress has increased by 193 crores. 8. Advances reduction is not an issue. Company doesn't have to pay fixed interest which is obligatory 3. 5. 12. 10. Not a very big rise but this is in favour of company 6. Net Current assets are in negative. This is a good sign especially when there is no preference Capital. This means some fixed asset are being created and are yet to be converted into fixed assets 7. No fixed debenture borrowings. Liabilities has been increased by 301 crores.1. Reserves and surplus have increased by 1.

016 Debt Equity Ratio 0.02 .71 0.066 0.Balance Sheet Ratios: 2011 2012 Current ratio 0.07 0.80 0.027 Capital Gearing Ratio 0.72 Proprietors Ratio 0.88 Quick Ratio 0.025 0.

81 1.92 .78% 115.11 19.70% 0.Income Ratios Gross profit Ratio Net Profit Ratio Operating Ratio Earning per share Administrative Expense Ratio Selling & Distribution Expense Ratio Finance Expense Ratio Stock turnover Ratio Price Earning Ratio 2011 19.97 14.42 1.11% 30.1 2012 18.03 19.39 15.8 11.14% 103.40% 0.01% 32.80% 1.8 19.50% 2.

64) 326.82 (1204.64 22.69 265.16 52.22) 3409.14 0.14 0.65 — (338.12 0. demolished.39 (15. net Dividend on long-term investments 0.95 18.81 2. Operating activities Profit before tax Adjustments: Add: i) Depreciation ii) Provision for diminution in value of investment in the company’s subsidiary.75 122.09 (6.86 9.17 145.96 320.49 9.49 ii) Provision for doubtful debts and advances written back iii) Surplus on sale of assets iv) Surplus on pre-payment of sales tax deferral liability/loan .73 275.56 42.91) 365.Particulars I.65 7.026.34 15.88 1.347.76 33.51 2011 (in cr) 4.39) 4028.03) (18. discarded and scrapped vii) Provision for doubtful debts and advances viii) Amortisation of premium/discount on acquisition of fixed income securities ix) Interest expense Less: i) Investment income included in above: Interest on long-term investments Interest on fixed deposits and others Profit on sale of investments.62 — 134 2.82 1. net Surplus/(Loss) on redemption of securities.27 — 2.84 102.65 20. PT.24 340.47 Amortization of premium/discount on acquisition of fixed income securities 2012 (in cr) 4.37 826.22 9.91 1.14 0.88 6. Bajaj Auto Indonesia iii) Valuation losses of derivative hedging instruments iv) Amount written off against technical know-how v) Amount written off against leasehold land vi) Loss on assets sold.

27) 2.14 (18. net Dividend on long-term investments Amortisation of premium/discount on acquisition of fixed income securities (131.96) (108.42) (986.47 (15. net iii) (Increase)/decrease in other bank balances iv) Capital expenditure v) Sales proceeds of assets/adjustment to gross block vi) Capital expenditure on development of technical know-how vii) Investment income Interest on long-term investments Interest on fixed deposits and others Profit on sale of investments. etc.03) 0.613.72 1.88 (210.959.18 (1148.56 42.52 (802.09 (6.98) 22.587.07) (90.959.2) 4. associates.64) 326.72 (68.88) (771.45) 457.81 98.25) 1.91 (101.613.25) (62.10) iii) Loans and advances and other assets iv) Liabilities and provisions Annuity payments (net) to VRS optees Net cash from operating activities before income tax Income tax paid Net cash from operating activities Carried forward Brought forward II.49) 0.81 .97 (29.1) (5.16 (200.63) 39.94) (1068.58) 2. ii) (Increase)/decrease in other investments.91 2.88 6. Investment activities i) (Increase)/decrease in investment in subsidiaries. net Surplus/(Loss) on redemption of securities.97 (974.613.57) (474.16 52.76 33.21 (6.25) 320.108.Change in assets and liabilities i) Inventories ii) Trade receivable (62.959.39 0.72 1.87 (19.56) 275.14) (112.59) 297.94) (18.82 1.91 2.08) (608.91) 365.

Financing activities i) Short-term bank loan taken/(repaid) ii) Cash credit from banks iii) Interest expense iv) Deferral/(repayment) of sales tax deferral liability/loan v) Pre-payment of sales tax deferral liability/loan vi) Dividend paid vii) Corporate dividend tax paid Net cash from financing activities Net change in cash and cash equivalents Cash and cash equivalents as at 1 April 2011 [Opening balance] Cash and cash equivalents as at 31 March 2012 [Closing balance] (0.54 100.2 228.88) (10.514.47 2.74 — — .69) 36.55 (1.58) (96.12) (861.14) (577.12 (445.68 (368.75) 363.24) (31.53 990.26) (187.39) (1154.53) (22.76) 326.178.31 10.74 1.77) (1564.06 (623.38) 950.31) (23.47 (134.44) 2.(Increase)/decrease in investment income receivable Net cash from investment activities Carried forward Brought forward III.83 (2.514.19) 990.09 228.53 134.99) 128.

06 181.53 2011 (In cr) 547.62 BY Bal b/d By Interest/Dividends from Investment Fund From Operations Amt (In cr) 2.88 1.850.Sources Of Funds By Interest/Dividends from Investment Statement of Fund flow Amt (In cr) Application Of Funds 326.88 Paid-off Secured Loans Paid-off Unsecured Loans Addition in Assets Decrease in Working Capital Amt (In cr) 23.35 -1558.53 -1377.28 Sundry Debtors Cash and Bank Balance 423.76 To Bal c/d 3.850.45 1065.515.40 1335.53 204.2 446.22 362.008.705.40 3.28 Particulars To Depreciation Adjusted P & L Amt (In cr) Particulars 145.49 1548.008.49 2624.76 155.76 Particulars Current Assets Inventories Statement of Changes in Working Capital 2012 (In cr) 678.86 Less: Current liabilities 2925.48 326.31 .14 3.14 926.28 Fund From Operations 1.55 1335.

37 5% 450% WACC 21.56% 5751.00% .Particulars Equity Share Capital Reserves & Surplus Amount Percentage Interest/Dividend (In cr) 289.7 95% 450% 428.07 100% 450.44% 6041.

33 = 1.149.57 = 1.57 4.01 Combined Leverages = Operating Leverages x Financial Leverages = 1.11 .Operating Leverages = Contribution Earning before interest & tax 4.11 Financial Leverages = Earning before interest & tax Earning before tax 4.600.149.127.85 4.

.The company expects a strong 30+% growth in exports volume continuing in FY’13 as well. It should make up for poor domestic demand which is going through a soft patch due to weak consumer sentiments. It implies a higher profitability and provides room for increasing promotion costs to push sales in the sluggish domestic market. The company is pinning hopes on the launch of new Pulsar in Q4FY12 to bring back the demand momentum. The company has not seen any slow‐down in demand from Nigeria. In our view. It expects growth momentum in exports to continue in FY’13 as well and Africa to be the key market. Steady exports to offset domestic weakness. monthly export numbers and new Pulsar launch in Q4FY’12 are key near term triggers.

Other highlights • RE60: The management seemed very much optimistic on the success of RE60. USD/INR contracts were taken at 47‐49 (H2FY12) and later at 47‐51. • Further. Export markets • The company has not experienced any slowdown in exports so far. • Africa contributes 45% to total exports and will remain the key growth market for the company Forex cover • Average USD/INR rate was 49.000‐19.8 in Q2FY12 for exports realizations. This is despite heavy ad expenses from Hero Motocorp. The run rate can be higher if permit opens up in Karnataka and Delhi.• The company expects 5%‐6% growth in domestic two wheeler industry in Q4 of FY12.000 units of three‐wheeler in the next six months. Earlier. it has given a healthy guidance of +30 % growth in FY13 as well. .4 in Q3FY12 compared to 47. no time line is set for India due to uncertainty in government approvals. its closest competitor. They are on track to commercially launch the product in exports markets though. • 70% of FY13 exports have already been covered. It has maintained its earlier guidance (for exports) of 1.5mn units in FY12. • It targets monthly sales of 18. • They maintained their faith on low spend in normal ad expenses except for new launches.

86%) 1523.95 1595 1528.1 44.1 242 52 Week Offer 0 0 1356 .8 Bid 1592. 17:00 52 Week 1843.6 41.BSE – 20TH July 2011 to 20th July 2012 Open High Low Prev.35 Low Prev.2 Vol 52 Week 133310 1839 BSE : Jul 20. Close Price Quantity 1590.6 257 Offer 0 0 NSE – 20TH July 2011 to 20th July 2012 Open High 1592.85 1549.05 1547.67%) 1539.25 Bid 1590. 17:00 52 Week 1351.05 1596 Vol 1168722 NSE : Jul 20.40 (2.30 (2. Close Price Quantity 1523.

.Year 2012 Month May Dividend (%) 450 2011 2010 2009 2008 May May May May 400 400 220 200 How hot is this stock? Stock Calls BUY ! Price* Volume* MF holdings Sales * Computed on last 15 days' trading figures.

Thanks .

Sign up to vote on this title
UsefulNot useful