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Bajaj Auto Ltd

NSE: BAJAJ-AUTO BSE: 532977

9972.50

(-1.36%)

Mon, 09 Mar 2026, 08:28 pm

Bajaj Auto Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are covered by earnings (1.5x coverage).
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Bajaj Auto's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Bajaj Auto's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

    future

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    Pros

    • Bajaj Auto is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
    • Performance (ROE) is expected to be above the current IN Auto industry average.
    • An improvement in Bajaj Auto's performance (ROE) is expected over the next 3 years.
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    Cons

    • Cash flow for Bajaj Auto is expected to increase but not above the 50% threshold in 2 years time.
    • Bajaj Auto's earnings are expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
    • Bajaj Auto's earnings growth is positive but not above the India market average.
    • Bajaj Auto's earnings growth is positive but not above the low risk savings rate of 7.2%.
    • Bajaj Auto's earnings are expected to decrease over the next year.
    • Bajaj Auto's net income is expected to decrease over the next 2 years.
    • Bajaj Auto's revenue is expected to decrease over the next 2 years.
    • Bajaj Auto's revenue is expected to grow by 1.4% yearly, however this is not considered high growth (20% yearly).
    • Bajaj Auto's revenue growth is positive but not above the India market average.

    health

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    Pros

    • Bajaj Auto is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
    • Bajaj Auto is profitable, therefore cash runway is not a concern.
    • Bajaj Auto is profitable, therefore cash runway is not a concern.
    • Bajaj Auto has no debt, it does not need to be covered by operating cash flow.
    • Bajaj Auto has no debt, it does not need to be covered by short term assets.
    • Bajaj Auto's cash and other short term assets cover its long term commitments.
    • Bajaj Auto has no debt compared to 5 years ago when it was 1%.
    • Bajaj Auto has no debt, therefore coverage of interest payments is not a concern.
    • Bajaj Auto has no debt.
    • Low level of unsold assets.
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    Cons

      management

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      Pros

      • The average tenure for the Bajaj Auto board of directors is over 10 years, this suggests they are a seasoned and experienced board.
      • Rajiv's compensation has been consistent with company performance over the past year, both up more than 20%.
      • More shares have been bought than sold by Bajaj Auto individual insiders in the past 3 months.
      • The average tenure for the Bajaj Auto management team is over 5 years, this suggests they are a seasoned and experienced team.
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      Cons

      • Rajiv's remuneration is higher than average for companies of similar size in India.

      misc

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      Pros

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        Cons

        • Bajaj Auto has significant price volatility in the past 3 months.

        past

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        Pros

        • Bajaj Auto's year on year earnings growth rate has been positive over the past 5 years.
        • Bajaj Auto used its assets more efficiently than the IN Auto industry average last year based on Return on Assets.
        • Bajaj Auto has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
        • Bajaj Auto's earnings growth has exceeded the IN Auto industry average in the past year (5.8% vs 5.5%).
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        Cons

        • Bajaj Auto's 1-year earnings growth is less than its 5-year average (5.8% vs 9.1%)
        • Bajaj Auto's use of capital has not improved over the past 3 years (Return on Capital Employed).

        value

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        Pros

        • 532977 outperformed the Auto industry which returned -17.2% over the past year.
        • 532977 outperformed the Market in India which returned -14.5% over the past year.
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        Cons

        • Bajaj Auto's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
        • Bajaj Auto's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
        • Bajaj Auto is overvalued based on assets compared to the IN Auto industry average.
        • Bajaj Auto is poor value based on expected growth next year.
        • Bajaj Auto is overvalued based on earnings compared to the IN Auto industry average.
        • Bajaj Auto is overvalued based on earnings compared to the India market.
        • BSE:532977 is up 1.8% underperforming the Auto industry which returned 10.7% over the past month.
        • BSE:532977 is up 1.8% underperforming the market in India which returned 8% over the past month.

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