⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BAJAJ-AUTO - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | BAJAJ-AUTO | Market Cap | 2,59,120 Cr. | Current Price | 9,267 ₹ | High / Low | 10,187 ₹ |
| Stock P/E | 28.2 | Book Value | 1,100 ₹ | Dividend Yield | 2.27 % | ROCE | 37.6 % |
| ROE | 28.5 % | Face Value | 10.0 ₹ | DMA 50 | 9,498 ₹ | DMA 200 | 9,120 ₹ |
| Chg in FII Hold | -0.82 % | Chg in DII Hold | 1.29 % | PAT Qtr | 2,549 Cr. | PAT Prev Qtr | 2,480 Cr. |
| RSI | 44.1 | MACD | -145 | Volume | 2,51,912 | Avg Vol 1Wk | 3,92,418 |
| Low price | 7,088 ₹ | High price | 10,187 ₹ | PEG Ratio | 1.46 | Debt to equity | 0.00 |
| 52w Index | 70.3 % | Qtr Profit Var | 20.9 % | EPS | 327 ₹ | Industry PE | 29.0 |
📊 Financial Overview
- Revenue & Profitability: PAT improved from 2,480 Cr. to 2,549 Cr. (+20.9%), showing strong growth momentum.
- Margins & Returns: ROCE (37.6%) and ROE (28.5%) are excellent, reflecting high efficiency and strong shareholder returns.
- Debt: Debt-to-equity ratio at 0.00, debt-free balance sheet ensures financial stability.
- Cash Flow: EPS at 327 ₹, consistent with robust profitability.
💹 Valuation Metrics
- P/E Ratio: 28.2 vs Industry PE of 29.0 → Fairly valued.
- P/B Ratio: Current Price ₹9,267 vs Book Value ₹1,100 → Stretched but supported by strong fundamentals.
- PEG Ratio: 1.46 → Reasonable, suggesting valuation aligns with growth prospects.
- Intrinsic Value: Current price close to fair value, supported by strong earnings and efficiency.
🏢 Business Model & Competitive Advantage
- Global leader in two-wheelers with strong brand recognition.
- Efficient operations, high margins, and strong export presence.
- Debt-free structure enhances resilience and long-term sustainability.
📈 Entry Zone Recommendation
- Technicals: RSI at 44.1 (neutral), MACD negative, price below 50DMA & 200DMA.
- Suggested entry zone: ₹8,500–₹8,800 for accumulation.
- Long-term holding viable given strong fundamentals, dividend yield, and industry leadership.
✅ Positive
- Strong ROCE (37.6%) and ROE (28.5%).
- Debt-free balance sheet.
- Quarterly profit growth (+20.9%).
- Dividend yield at 2.27% provides steady income.
⚠️ Limitation
- Stock trading below DMA levels, showing weak momentum.
- P/B ratio stretched compared to book value.
- FII holding reduced (-0.82%).
📉 Company Negative News
- FII holding decreased (-0.82%).
- Weak technical momentum with MACD negative.
📈 Company Positive News
- DII holding increased (+1.29%).
- Quarterly profits improved steadily.
- Strong dividend yield supports investor confidence.
🏭 Industry
- Industry PE at 29.0, close to Bajaj Auto’s 28.2.
- Automobile sector stable with long-term growth potential in India and exports.
🔎 Conclusion
- Bajaj Auto shows excellent efficiency, strong profitability, and a debt-free balance sheet.
- Valuation is fair compared to industry peers, supported by strong fundamentals.
- Best strategy: Accumulate in the ₹8,500–₹8,800 zone.
- Long-term holding viable given strong brand, dividend yield, and consistent earnings growth.