Bajaj Auto (BOM:532977)

QUOTE AND NEWS
The Economic Times  Jul 24  Comment 
"Bajaj Auto is a 'Buy' call with a target of Rs 2150 and a stop loss of Rs 2100."
The Hindu Business Line  Jul 17  Comment 
Amidst weak domestic demand for its bikes and three-wheelers, Bajaj Auto managed to grow its net sales by 7 per cent in the June 2014 quarter over the year-ago period. This was helped by...
The Hindu Business Line  Jul 17  Comment 
Shares of Bajaj Auto Ltd on Thursday fell by over 2 per cent after the company reported a marginal increase in its net profit for the first quarter ended June 30, 2014. The company’s stock...
The Hindu Business Line  Jul 17  Comment 
The Economic Times  Jul 17  Comment 
One-third of their production gets exported so any weakness in rupee straight away helps them as far as their P&L is concerned.
The Economic Times  Jul 17  Comment 
Bajaj Auto is a 'SELL' call with a target of Rs 2030 and a stop loss of Rs 2105.
Reuters  Jul 17  Comment 
Bajaj Auto, India's second-largest motorcycle maker, reported a flat quarterly profit, lagging expectations, hurt by sluggish sales volumes in the domestic market.
The Economic Times  Jul 17  Comment 
The improvement in earnings growth is seen on back of the higher sales proportion witnessed in its motorcycles exports vertical.
The Economic Times  Jul 3  Comment 
"Bajaj Auto Ltd is a 'BUY' call with a target of Rs 2372 and a stop loss of Rs 2326."
The Hindu Business Line  Jul 2  Comment 
Bajaj Auto sold 3.05 lakh units during June 2014 against 2.96 lakh units in June 2013, representing a rise 3 per cent rise year-on-year. The company’s motorcycle sales stood at 2.62 lakh...
The Hindu Business Line  Jun 27  Comment 
The Pune Industrial Court has denied interim relief to motorcycles maker Bajaj Auto in an ongoing wage dispute with its workers’ union, Vishwakalyan Kamgar Sanghatana (VKS). Bajaj Auto’s...





 

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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