BAJAJ PPT
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Transcript of 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
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