BAJAJ AUTO LTD

(BAJAJ-AUTO | BSE Code: 532977)

INR 4917.4
52 Week (High - INR 4,938 & Low - 3,461)

About the company

Bajaj Auto Limited is an Indian multinational automotive manufacturing company based in Pune. It manufactures
motorcycles, scooters and auto rickshaws. Bajaj Auto is a part of the Bajaj Group. It was founded by Jamnalal Bajaj
(1889–1942) in Rajasthan in the 1940s. Bajaj Auto is the world's third-largest manufacturer of motorcycles and the second-
largest in India. It is the world's largest three-wheeler manufacturer. In December 2020, Bajaj Auto crossed a market
capitalisation of ₹1 trillion (US$13 billion), making it the world's most valuable two-wheeler company.

Financial Summary
Revenue (INR Crs.) Net Profit (INR Crs.) Average Total Assets (INR Crs.)
36,455 35,124
33,145 34,356
29,919 6,166 6,060 30,056
27,741 5,212 27,672
4,857

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Return on Equity (%) Return on Asset (%) Financial Leverage

1.23x
23.22% 1.23x
18.83%
17.95%
21.58% 17.25% 1.20x
20.47% 16.16%
19.85% 1.19x

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Recent Updates:
• Bajaj Auto launches India-made Triumph bikes, shares jump to record high.
• Bajaj Auto June sales fall 2% YoY to 3.4 lakh units on lower exports; two-wheeler sales decline 7%.
• Bajaj Auto’s domestic sales for the month increased 45% to 1,99,983 units from 1,38,351 units, while exports
fell 32% to 1,40,998 units from 2,08,653 units, YoY.
• Bajaj Auto's standalone net profit fell 2% to Rs 1,433 crore for the quarter ended March. It was Rs 1,469 crore
in the same period last year.
• The company's operating profit rose 26% to Rs 1,718 crore for the reporting quarter as against Rs 1,365 crore a
year ago.
• Three-wheeler sales crossed the 100,000 units milestone for the first time since the pandemic, reflecting the
strong rebound to pre-Covid levels for Bajaj.
• The company has surplus cash of Rs 17,445 crore as of March 2023.

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Dupont Analysis - Return on Equity & Return on Asset
Return on Equity (ROE)
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 4,079.5 4,219.0 4,927.6 5,211.9 4,857.0 6,165.9 6,060.2
Average Shareholder Equity 15,938.4 19,140.9 21,829.5 22,447.9 24,467.8 28,566.5 29,610.6
Return on Equity 25.60% 22.04% 22.57% 23.22% 19.85% 21.58% 20.47%

ROE - Dupont Equation

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 4,079.5 4,219.0 4,927.6 5,211.9 4,857.0 6,165.9 6,060.2
Revenue 21,754.7 25,209.9 30,357.6 29,918.7 27,741.1 33,144.7 36,455.4
Net Profit Margin (A) 18.75% 16.74% 16.23% 17.42% 17.51% 18.60% 16.62%

Revenue 21,754.7 25,209.9 30,357.6 29,918.7 27,741.1 33,144.7 36,455.4

Average Total Assets 19,439.0 23,389.3 26,987.7 27,672.2 30,055.9 34,356.5 35,123.8
Asset Turnover Ratio (B) 1.1x 1.1x 1.1x 1.1x 0.9x 1.0x 1.0x

Average Total Assets 19,439.0 23,389.3 26,987.7 27,672.2 30,055.9 34,356.5 35,123.8
Average Shareholder Equity 15,938.4 19,140.9 21,829.5 22,447.9 24,467.8 28,566.5 29,610.6
Equity Multiplier (C) 1.22x 1.22x 1.24x 1.23x 1.23x 1.20x 1.19x

Return on Equity (A*B*C) 25.60% 22.04% 22.57% 23.22% 19.85% 21.58% 20.47%

Return on Asset (ROA)

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 4,079.5 4,219.0 4,927.6 5,211.9 4,857.0 6,165.9 6,060.2
Average Total Assets 19,439.0 23,389.3 26,987.7 27,672.2 30,055.9 34,356.5 35,123.8
Return on Asset 20.99% 18.04% 18.26% 18.83% 16.16% 17.95% 17.25%

ROA - Dupont Equation

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Net Profit 4,079.5 4,219.0 4,927.6 5,211.9 4,857.0 6,165.9 6,060.2
Revenue 21,754.7 25,209.9 30,357.6 29,918.7 27,741.1 33,144.7 36,455.4
Net Profit Margin (A) 18.75% 16.74% 16.23% 17.42% 17.51% 18.60% 16.62%

Revenue 21,754.7 25,209.9 30,357.6 29,918.7 27,741.1 33,144.7 36,455.4

Average Total Assets 19,439.0 23,389.3 26,987.7 27,672.2 30,055.9 34,356.5 35,123.8
Asset Turnover Ratio (B) 1.1x 1.1x 1.1x 1.1x 0.9x 1.0x 1.0x

Return on Asset (A*B) 20.99% 18.04% 18.26% 18.83% 16.16% 17.95% 17.25%

Dupont Summary
• ROE has decreased in 7 years from 25.60% to 20.47% with the decrease in net profit margins from 18.75% in
FY2017 to 16.62% in FY2023.
• Asset efficiency remained constant and the net profit margins has decreased making reason for fall in ROE.
• ROA has decreased from 20.99% in FY2017 to 17.25% in FY2023. The reason for this decrease is due to the
fall in net profit margins of the company.

Disclaimer : This report is made as a part of educational assignment and is meant for educational purposes only. The author of the
report is not liable for any losses due to actions taken based on this report. It is advisable to consult SEBI registered res earch analyst

Page 2
 BAJAJ AUTO LTD
(BAJAJ-AUTO | BSE Code: 532977)
INR 4917.4
52 Week (High - INR 4,938 & Low - 3,461)

Altman's Z Score Analysis

Bajaj Auto Limited is an Indian multinational automotive manufacturing company based in Pune. It manufactures motorcycles, scooters and
auto rickshaws. Bajaj Auto is a part of the Bajaj Group. It was founded by Jamnalal Bajaj (1889–1942) in Rajasthan in the 1940s. Bajaj Auto is
the world's third-largest manufacturer of motorcycles and the second-largest in India. It is the world's largest three-wheeler manufacturer.
In December 2020, Bajaj Auto crossed a market capitalisation of ₹1 trillion (US$13 billion), making it the world's most valuable two-wheeler
company.

Financial Summary
Working Capital /Total Assets Retained Earnings / Total Assets EBIT / Total Assets
1%
4% 25%
22% 22%
3% 19%

1%
0%
0% 0% 0%

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Market Cap / Total Liabilities Sales / Total Assets Altman Z Score

113% 533
87459% 86110% 88496% 104% 526 518
94%
83%

46601% 282

2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023

Recent Updates:
• Bajaj Auto launches India-made Triumph bikes, shares jump to record high.
• Bajaj Auto June sales fall 2% YoY to 3.4 lakh units on lower exports; two-wheeler sales decline 7%.
• Bajaj Auto’s domestic sales for the month increased 45% to 1,99,983 units from 1,38,351 units, while exports fell 32% to
1,40,998 units from 2,08,653 units, YoY.
• Bajaj Auto's standalone net profit fell 2% to Rs 1,433 crore for the quarter ended March. It was Rs 1,469 crore in the
same period last year.
• The company's operating profit rose 26% to Rs 1,718 crore for the reporting quarter as against Rs 1,365 crore a year
ago.
• Three-wheeler sales crossed the 100,000 units milestone for the first time since the pandemic, reflecting the strong
rebound to pre-Covid levels for Bajaj.
• The company has surplus cash of Rs 17,445 crore as of March 2023.

Page 3
Altman Z Score Analysis Calculation
Working Capital / Total Assets
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Working Capital 455.5 -283.4 943.5 114.9 1,024.7 1,435.0 375.4
Total Assets 21,637.6 25,141.0 28,834.4 26,510.0 33,601.7 35,111.2 35,136.5
Working Capital / Total Assets (A) 2.10% -1.13% 3.27% 0.43% 3.05% 4.09% 1.07%

Retained Earnings / Total Assets

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Retained Earnings 1,020.3 1,079.0 1,163.6 0.0 0.0 0.0 396.1
Total Assets 21,637.6 25,141.0 28,834.4 26,510.0 33,601.7 35,111.2 35,136.5
Retained Earnings / Total Assets (B) 4.72% 4.29% 4.04% 0.00% 0.00% 0.00% 1.13%

EBIT / Total Assets

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
EBIT 5,589.0 5,934.7 6,960.1 6,695.3 6,248.1 7,660.3 7,881.5
Total Assets 21,637.6 25,141.0 28,834.4 26,510.0 33,601.7 35,111.2 35,136.5
EBIT / Total Assets (C) 25.83% 23.61% 24.14% 25.26% 18.59% 21.82% 22.43%

Market Cap / Long-term Liabilities

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Market Cap 81,189.7 79,431.6 84,247.2 58,526.8 1,06,227.2 1,05,717.8 1,09,938.4
Long-term Liabilities 119.9 120.8 124.5 125.6 121.5 122.8 124.2
Market Cap / Long-term Liabilities (D) 67714.53% 65770.98% 67657.59% 46601.49% 87458.56% 86110.47% 88495.87%

Sales / Total Assets

Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Sales 21,754.7 25,209.9 30,357.6 29,918.7 27,741.1 33,144.7 36,455.4
Total Assets 21,637.6 25,141.0 28,834.4 26,510.0 33,601.7 35,111.2 35,136.5
Sales / Total Assets (E) 100.54% 100.27% 105.28% 112.86% 82.56% 94.40% 103.75%

Altman Z Score
Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23
Final Score 408.2 396.5 407.9 281.6 526.2 518.4 532.8
Financial Stability Strong Strong Strong Strong Strong Strong Strong

Disclaimer : This report is made as a part of educational assignment and is meant for educational purposes only. The author of the report
is not liable for any losses due to actions taken based on this report. It is advisable to consult SEBI registered research analyst before
making any investments.

Page 4