bajajautofinancialanalysis-100127010733-phpapp01

8/7/2019 bajajautofinancialanalysis-100127010733-phpapp01

1/34

Bajaj Auto Financial Analysis

Presented by:Dhaval Panchal

Hitesh Patel

Sachin Patel


2/34

HISTORY

Founded in 1926.

The man behind BAJAJ:

JAMANALAL BAJAJ.

He valued honesty over profit, actions over wordsand common good over individual gain.

KAMALNAYAN BAJAJ, in 1942, diversified it intovarious manufacturing activities.


3/34

1931, started as su

gar manuf

actu

ringfact

ory.

1945, turned as the BAJAJ AUTO.

RAHUL BAJAJ took charge ofbusiness in 1965

Worth US$ 3 billion


4/34

BAJAJ AUTO

Manufacturers ofScooters, Motor Bikes, 3-Wheelers,Spare parts.

Bajaj Auto came into existence on November 29,1945 as M/s Bachraj Trading Corporation PrivateLimited.

Initially it used to import the two wheelers fromoutside, but from 1959 it started manufacturing of

two wheelers in the country. It is India's largest and the world's 4th largest two-

and three-wheeler maker.

Learning, Innovation, Perfection, Speed andLearning, Innovation, Perfection, Speed and

TransparencyTransparency


5/34

Timeline ofnew releases

1971 - three-wheeler goods carrier

1972 - Bajaj Chetak

1990- Bajaj Sunny

1997- Kawasaki Bajaj Boxer

1998 - Kawasaki Bajaj Caliber,legend,Bajaj Spirit

2000 - Bajaj Saffire

2001 - Eliminator, Pulsar

2003 - Caliber115, Bajaj Wind 125, Bajaj Pulsar

2004 - Bajaj CT 100, New Bajaj Chetak 4-stroke 2006 - Bajaj Platina

2007 - Bajaj Pulsar-200(Oil Cooled), Bajaj Kristal, Bajaj Pulsar220 DTS-Fi , XCD 125 DTS-Si


6/34


7/34

Automobile industry

Tenth largest in the world with an annual production of

approximately 2 million units

AUTOMOBILE

2 WHEELER 3 WHEELERPASSENGER

VEHICLE

COMMERCIAL

VEHICLE


8/34

Trends in Automobile sector


9/34

Argo Scooters - The scooters from BAJAJ

in U.S.A


10/34

Export Destinations


11/34

Financial Highlights 1999-2009

.years

partic

ulars

99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09

Net

Sales(crore)

3810.5 3658.9 4221.4 4895.9 5580.1 4755.1 5736.3 7469.3 9292.2 8663.2

Gross

Profit

(crore)

970.5 546.8 767.5 959.8 1140.3 960.4 1086.4 1580.7 1728.0 1134.7

Net

Profit

(crore)

613.7 262.6 521.1 538.4 731.5 731.5 766.8 1101.6 1237.9 755.9

workin

g

capital

(crore)

6327 5873 3353 2144 (2730) (2042) (6886) (5141) (2275) (1122)


12/34

We adopt the ratio analysis method toanalyze the financial position ofBajaj Auto

Ltd

.


13/34

.

Objectives ofRatio Analysis

Standardize financial information for

comparisons

Evaluate current operations

Compare performance with past

performance

Compare performance against other

firms or industry standards

Study the efficiency ofoperations

Study the riskofoperations


14/34

.Analysis and interpretation


15/34

.


16/34

Liquid Ratio

.


17/34

.


18/34

Absolute Liquid Ratio


19/34

.


20/34

Inventory Turnover Ratio


21/34

..


22/34

Debtors Turnover Ratio


23/34


24/34

Creditors Turnover Ratio

.


25/34

.


26/34

Working Capital Turnover Ratio

.


27/34

.

.


28/34

Bajaj Auto V/s Hero Honda

.


29/34

Comparison

. Attributes Bajaj Auto Hero HondaP/E Ratio 31.74 25.75

EPS 45.39 64.18

NET PROFIT

MARGIN(%)

7.40 10.30

LASTDIVIDENT

(%)

220 1000

RETURN ON AVG.

EQUITY

38.92 33.72

GROSS PROFITMARGIN(%)

11.06 12.75


30/34

.COMPARISON

ATTRIBUTES BAJAJ AUTO HERO HONDA

SALES(2009) 8893(CR) 12534(CR)

MKT CAP 21448(CR) 32400(CR)

SHARE HOLDING

(PROMOTERS)

49.6% 54.96%

NON

PROMO.SHARE

HOLDING

OTHERS HOLDING

23.75%

9.49%

36.76%

1.18%


31/34

CONCLUSION

BAJAJ AUTO NET PROFIT MARGIN IS LOWER THAN HERO

HONDAS

RETURN ON AVG EQUITY OF BAJAJ AUTOS IS MORE

THAN HERO HONDA

MARKET CAPITAL OF HERO HONDA IS ALSO MORE THANBAJAJ AUTO.

BAJAJ AUTOS FINANCIAL POSITION IS NOT AS PER STD.

WORKING CAPITAL RATIO IS NEGATIVE FOR ALL THE YEAR

WHICH IS NOT GOT FOR THE COMPANY

CURRENT RATIO AND LIQUID RATIO IS ALSO SHOWING A

DECREASING TREND


32/34

CONCLUSION..

BAJAJ AUTO SHOULD TRY TO IMPROVE ITSCURRENT RATIO

WORKING CAPITAL IS NEGATIVE WHICH IS NOT

IMPRESSIVE

SALES IN THE CURRENT YR.DECREASES DUE TO

RECESSION

OVERALL FINANCIAL AND EARNING CAPACITY OF

BAJAJ AUTO IS LOWER THAN HERO HONDA


33/34

COMMUNITY SERVICE

JankiDevi Bajaj Gram Vikas Sanstha.

Samaj Seva Kendra.

Kamalnayan Bajaj Hospital.


34/34

THANK YOU.

bajajautofinancialanalysis-100127010733-phpapp01

Documents

Transcript of bajajautofinancialanalysis-100127010733-phpapp01