Bajaj Auto Limited Fundamental Analysis (NSE: BAJAJ-AUTO.NS)
Bajaj Auto Limited Fundamental Analysis (NSE: BAJAJ-AUTO.NS)
Bajaj Auto Limited (NSE: BAJAJ-AUTO.NS) shows strong financial fundamentals with a PE ratio of 26.57, profit margin of 16.76%, and ROE of 33.04%. The company generates $702.2B in annual revenue with strong year-over-year growth of 12.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 43.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BAJAJ-AUTO.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentBAJAJ-AUTO.NS demonstrates superior asset utilization.
Valuation Score
ModerateBAJAJ-AUTO.NS shows balanced valuation metrics.
Growth Score
ModerateBAJAJ-AUTO.NS shows steady but slowing expansion.
Financial Health Score
ExcellentBAJAJ-AUTO.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateBAJAJ-AUTO.NS maintains healthy but balanced margins.
Key Financial Metrics
Is BAJAJ-AUTO.NS Expensive or Cheap?
P/E Ratio
BAJAJ-AUTO.NS trades at 26.57 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BAJAJ-AUTO.NS's PEG of 0.49 indicates potential undervaluation.
Price to Book
The market values Bajaj Auto Limited at 8.04 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.56 times EBITDA. This signals the market has high growth expectations.
How Well Does BAJAJ-AUTO.NS Make Money?
Net Profit Margin
For every $100 in sales, Bajaj Auto Limited keeps $16.76 as profit after all expenses.
Operating Margin
Core operations generate 19.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $33.04 in profit for every $100 of shareholder equity.
ROA
Bajaj Auto Limited generates $15.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Bajaj Auto Limited generates limited operating cash flow of $-2.61B, signaling weaker underlying cash strength.
Free Cash Flow
Bajaj Auto Limited generates weak or negative free cash flow of $-4.64B, restricting financial flexibility.
FCF Per Share
Each share generates $-16.60 in free cash annually.
FCF Yield
BAJAJ-AUTO.NS converts -0.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.58
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.76
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.33
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How BAJAJ-AUTO.NS Stacks Against Its Sector Peers
| Metric | BAJAJ-AUTO.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.57 | 26.83 | Neutral |
| ROE | 33.04% | 883.00% | Weak |
| Net Margin | 16.76% | -3027.00% (disorted) | Strong |
| Debt/Equity | 0.58 | 0.60 | Neutral |
| Current Ratio | 1.76 | 2.44 | Neutral |
| ROA | 15.23% | 308.00% | Weak |
BAJAJ-AUTO.NS outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Bajaj Auto Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
71.57%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
45.72%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
-131.36%
Industry Style: Cyclical, Growth, Discretionary
Declining