Bajaj Auto (BOM:532977)

QUOTE AND NEWS
The Hindu Business Line  9 hrs ago  Comment 
Bajaj Auto today has bagged an order for 1.25 lakh units of Discover-125M motorcycles from Sri Lankan government. The company through its distributor David Pieris Motor Company in Sri Lan...
The Hindu Business Line  Dec 11  Comment 
BHEL steamed up 1.80 per cent in the morning session on the BSE on Thursday. At 11.19 am it was trading at Rs 257.65 as against Rs 253.10 at close yesterday. Bajaj Auto revved up to hold...
The Economic Times  Dec 11  Comment 
'Bajaj Auto Ltd is a 'SELL' call with a target of Rs 2540 and a stop loss of Rs 2598.'
The Economic Times  Dec 10  Comment 
"Bajaj Auto is a 'SELL' call with a target of Rs 2510 and a stop loss of Rs 2595."
The Times of India  Dec 2  Comment 
Bajaj Auto on Tuesday reported six per cent decline in motorcycle sales at 2,61,94 units in November 2014.
The Hindu Business Line  Dec 2  Comment 
Even as many other auto makers have been reporting reasonably good sales in November 2014, Mahindra and Mahindra and Bajaj Auto remain on a sticky wicket. The M&M stock has so far lo...
The Hindu Business Line  Dec 2  Comment 
The Economic Times  Dec 2  Comment 
At 10:40 a.m.; Bajaj Auto was trading 1.1 per cent lower at Rs 2610. It hit a low of Rs 2565 and a high of Rs 2629.70 in trade today.
The Economic Times  Dec 2  Comment 
"Bajaj Auto is a good company for a long term investor and it will give you returns. In the short term in fact, not only this one."
The Economic Times  Nov 27  Comment 
Bajaj Auto is a 'SELL' call with a target of Rs 2530 and a stop loss of Rs 2625.
The Economic Times  Nov 26  Comment 
Analysts say currency devaluation by Nigeria alone could cut the company’s projected EPS for the next financial year by about 5-6%.





 

History

Bajaj Auto Ltd. came in to existance in year 1945. It started selling vehicle in 1948 after importing them from abroad.

In 1959 Bajaj started its own manufacturing unit in India (Akurdi Plant) . and 1960 it became publicly listed company.

In 1970s it started producing three wheelers (for goods transport also) and became pioneer in three wheeler business.

in the same decade it started production of one of the most successfull scooter model in india Bajaj Chetak.

In 80s it started production of Bikes with Kawasaki bajaj but till year 2000 it was not a major player in Bike segment.

But in year 2001 Bajaj came with Pulsar and became major player in Power biking. And now bajaj planning to go in four wheeler pessenger car segment also with 2500$ car.



Quarterly Result Analysis- Sept '09

Performance summary

- Topline grows by a decent 15% YoY during the quarter. Volume growth comes in at 7% YoY.

- Operating profits jump a strong 85% YoY as the company achieves record operating margins of 22%, a more than 8% expansion as compared to the previous quarter.

- Further aided by benign depreciation charges and lower extraordinary expenses, net profits during the quarter witness a spectacular growth of 118% YoY, enabling the company to post its highest ever quarterly profits.

- Half yearly bottomline grows by 93% YoY on the back of a 8% growth in topline.


(Rs m) 2QFY09 2QFY10 Change 1HFY09 1HFY10 Change
Units sold 640,042 686,727 7.30% 1,260,137 1,234,389 (2.00%)
Net sales 25,192 28,875 14.60% 48,239 52,260 8.30%
Expenditure 21,753 22,510 3.50% 42,132 41,341 (1.90%)
Operating profit (EBDITA) 3,439 6,365 85.10% 6,106 10,919 78.80%
EBDITA margin (%) 13.60% 22.00% 12.70% 20.90%
Other income 221 217 (1.70%) 509 449 (11.80%)
Interest (net) 59 ( ) 68 60 (12.10%)
Depreciation 331 336 1.50% 666 667 0.10%
Profit before tax 3,270 6,247 91.00% 5,881 10,642 80.90%
Extraordinary income/(expense) (611) (458) (25.00%) (611) (699)
Tax 810 1,760 117.30% 1,670 2,980 78.40%
Profit after tax/(loss) 1,849 4,028 117.90% 3,600 6,963 93.40%
Net profit margin (%) 7.30% 14.00% 7.50% 13.30%
No. of shares (m) 144.7 144.7 144.7 144.7
Diluted earnings per share (Rs)* 68.5
Price to earnings ratio (x)* 22.9
                                                  (* annualised)


What has driven performance in 2QFY10?

- The 15% growth in topline during the quarter was driven by both higher volumes as well as improved product mix. Motorcycles, which account for nearly 90% of all the vehicles sold by the company, grew by 5% in the domestic markets, whereas exports of the same improved 10%. The growth in the domestic markets was driven by new launches like the upgraded version of the Pulsar as well as the Discover DTS-Si. The company also managed to grow the domestic sales of its three wheelers by an impressive 27% during the quarter, a feat that could be attributed to its marketing initiatives geared towards the in-city segment. On the exports front, with the revival of its key exports market, it witnessed highest ever quarterly exports and the company is now well poised to exceed its target of 0.8 m vehicles for the year.

- As far as margins are concerned, the company has managed to achieve record operating margins to the tune of 22% during the quarter. This was higher by more than 800 basis points as compared to the same quarter last year and enabled the company to grow its operating profits by 85% on a YoY basis. The drastic improvement in margins could be attributed to greater sales of high value products such as Pulsars, Discovers and three wheelers as well as benefits emerging out of the economies of scale. Going forward, while the same level of margins may not continue, it could indeed come higher than historical levels as the company focuses more on high value products.


- With depreciation charges remaining benign and extraordinary losses coming in lower as compared to same quarter last year, the company has managed to more than double its net profits during the quarter, growing it by 118% YoY.

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