BAJAJ PPT

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 Public

Traded asBSE: 532977 NSE: BAJAJ-AUTO

BSE SENSEX Constituent

Industry Automotive

Headquarters Pune, Maharashtra, India

Key people Rahul Bajaj (Chairman)

Products Motorcycles, three-wheeler vehicles and cars

Revenue 16,974 crore (US$3.39 billion) (2011)

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

Employees 10,250 (2006-07)

Parent Bajaj Group

Website 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.

• World’s 4th largest 2 wheeler & 3 wheeler manufacturer.

• It is well known in Latin America, Africa, Middle East, South and South East Asia.

Product Award Award Body

Bajaj Pulsar 135 LS Bike of the Year 2010 BBC - TopGear

Bajaj Pulsar Hall of Pride Awards CNBC - Overdrive

Bajaj Pulsar 135 LS Bike of the Year 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

Auto Build

Discover 150 DTS-I Best Value for Money Vehicle of the Year ET ZigWheels

Awards of BAJAJ

Kawasaki Ninja 250RCNBC Overdrive 2010Bike of the Year

Kawasaki Ninja 250RBusiness StandardMotoring 2010Motoring Bike of the Year

Bajaj AutoNDTV Prot Car & BikeAwards 2010Best IntegratedCampaign 2 Wheeler

Kawasaki Ninja 250RIMOTY 2010Indian Motorcycle of the Year

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 COMPOSITIONRevenue (Rs 16609)

Two Wheelers(89%) Rs 14782.01

Import (75%)

Export (25%)

Three Wheelers (11%) Rs 1826.99

Import(47%)

Export (53%)

PRODUCT PORTFOLIO

Cost CompositionMarket Share

SALES OF BAJAJ (Domestic+Exports)

Export Geographical Spread

STOCK VALUATION

Share Holding Pattern(2011)

50.02

10.31

0.080000000000

0001

15.99

2.76

2.610.18

0.46

17.59

PROMOTER

FREIND & ASS OF PROMOTERS

GDR'S

FII

PFI'S

MUTUAL FUNDS

NATIONALISED & OTHER BANK

NRI'S & OCB'S

OTHER

Share Holding Pattern(2010)

Promoters 50%

Friends and associates of promoters 11%

GDRs 0%

Foreign Institutional Investors 18%

Public Financial Institutions

3%

Mutual Funds 3%

Nationalised & other banks

0%

NRIs & OCBs 0%

Others 14%

2010 Shareholding pattern

COST OF EQUITY

RISK FREE RATE 7.93%

RISK PREMIUM 8%

COST OF EQUITY= RF+BETA(RISK PREMIUM)

KE( or expected rate of return) 16.11%

WACCWACC = {(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%

2007 2008 2009 2010 20110

5

10

15

20

25

30

35

40

45

40

2022

40 40

Dividend per share

Dividend per share

2007 2008 2009 2010 20110

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9 0.840.88

0.84

0.69

0.80.76

0.64

0.73

0.55

0.71

LIQUIDITY RATIOS

CURRENT RATIOQUICK RATIO

2007 2008 2009 2010 20110

20

40

60

80

100

120

140

14.11 12.29 12.5721.19 19.76

12.0910.32 11.08

20.03 19.0212.668.32 7.4

14.23 19.820.97

39.7135.36

59.19

69.67

Profitability ratios

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

2007 2008 2009 2010 20110

1

2

3

4

5

6

0.28

0.84 0.7

0.45

0.03

0.29

0.840.83

0.45

0.06

2.96 2.95

2.6

3.5

4.85

LEVERAGE RATIOS

Long term Debt/Equity ratioTotal Debt/Equity ratioFixes Asset turnover ratio

Ratio

s

2007 2008 2009 2010 20110

10

20

30

40

50

60

70

52.7156.41

53.79

62.55

46.73

Earning Retention ratios

Earning Retention ratios

Ratio

s

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

STRENGTHS WEAKNESSES

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 two-wheeler segment

Cheaper imports from countries like China.

Entry of international brands.

Other motorcycle players have a strong brand presence

OPPORTUNITIES THREATS

REFERENCES

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