bajaj auto financial an alys

8/12/2019 Bajaj Auto Financial an Alys

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Bajaj Auto Financial Analysis

Presented by:Shailesh Mishra

Trilokinath Gupta

Purushottam Singh


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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.


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1931, started as sugar manufacturing factory.

1945, turned as the BAJAJ AUTO.

RAHUL BAJAJ took charge of business in 1965

Worth US$ 3 billion


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BAJAJ AUTO

Manufacturers of Scooters, 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 and

Transparency


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Timeline of new 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


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Automobile industry

Tenth largest in the world with an annual production of

approximately 2 million units

AUTOMOBILE

2 WHEELER 3 WHEELERPASSENGER

VEHICLE

COMMERCIAL

VEHICLE


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Trends in Automobile sector


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Argo Scooters - The scoo ters from BAJAJ

in U.S.A


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Export Destinations


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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)


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We adopt the ratio analysis method toanalyze the financial position of Bajaj Auto

Ltd

.


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Objectives of Ratio 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 of operations

Stud the risk of o erations


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.Analysis and interpretation


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.


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Liquid Ratio

.


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.


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Absolute Liquid Ratio


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.


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Inventory Turnover Ratio


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..


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Debtors Turnover Ratio


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.

.


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Creditors Turnover Ratio

.


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.


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Working Capital Turnover Ratio

.


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.

.


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Bajaj Auto V/s Hero Honda

.


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Comparison

.Attributes Bajaj Auto Hero HondaP/E Ratio 31.74 25.75

EPS 45.39 64.18

NET PROFIT

MARGIN(%)

7.40 10.30

LAST DIVIDENT

(%)

220 1000

RETURN ON AVG.

EQUITY

38.92 33.72

GROSS PROFITMARGIN(%)

11.06 12.75

COMPARISON


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.COMPARISON

ATTRIBUTES BAJAJ AUTO HERO HONDASALES(2009) 8893(CR) 12534(CR)

MKT CAP 21448(CR) 32400(CR)

SHARE HOLDING

(PROMOTERS)

49.6% 54.96%

NONPROMO.SHARE

HOLDING

OTHERS HOLDING

23.75%

9.49%

36.76%

1.18%


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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


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CONCLUSION..BAJAJ AUTO SHOULD TRY TO IMPROVE ITS

CURRENT 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


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COMMUNITY SERVICE

JankiDevi Bajaj Gram Vikas Sanstha.

Samaj Seva Kendra.

Kamalnayan Bajaj Hospital.


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THANK YOU.

bajaj auto financial an alys

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