Bajaj Auto Ltd.
ISIN: INE917I01010 • Market Cap: ₹3.22 Lakh Cr
The 5-Pillar Quality Audit for Bajaj Auto Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (20.7%), Return on Capital Employed (25.4%), and equity compounding (27.7%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.57 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (16.8%) and 3Y PAT CAGR (12.6%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 27.34 vs PEG of 2.42 and Dividend Yield of 1.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 55.0%, backed by 22.5% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 25.4%)
Bajaj Auto Ltd. generates exceptional return on capital employed of 25.4%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 27.7%)
Shareholder equity compounds at a healthy 27.7%, exceeding average Indian equity benchmarks.
Strong Topline Expansion (3Y Sales CAGR: 16.8%)
Revenue has expanded at 16.8% CAGR over 3 years, signaling industry market-share gains.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Automobile and Auto Components)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Automobile and Auto Components space.
Quantitative Strategy Eligibility
Checking BAJAJ-AUTO against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 77/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Automobile and Auto Components Sector Peer Comparison
Compare BAJAJ-AUTO directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Bajaj Auto Ltd. (BAJAJ-AUTO)Current | 77/100 | ₹3.22 Lakh Cr | 27.34 | 25.4% | 0.57 | — |
| Maruti Suzuki India Ltd. (MARUTI) | 71/100 | ₹4.30 Lakh Cr | 30.02 | 15.6% | 0.00 | View |
| Mahindra & Mahindra Ltd. (M&M) | 72/100 | ₹4.24 Lakh Cr | 22.97 | 16.6% | 1.43 | View |
| Eicher Motors Ltd. (EICHERMOT) | 74/100 | ₹2.19 Lakh Cr | 37.86 | 23.7% | 0.01 | View |
| TVS Motor Company Ltd. (TVSMOTOR) | 68/100 | ₹2.07 Lakh Cr | 60.46 | 29.9% | 3.31 | View |
| Samvardhana Motherson International Ltd. (MOTHERSON) | 64/100 | ₹1.80 Lakh Cr | 41.05 | 12.1% | 0.39 | View |
Frequently Asked Questions: Bajaj Auto Ltd.
Q:What is the 5-Pillar Fundamental Score for Bajaj Auto Ltd. (BAJAJ-AUTO)?
Bajaj Auto Ltd. has a RupeeTools Fundamental Score of 77/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (91/100), Financial Health (71/100), Growth (78/100), Valuation (63/100), and Ownership Quality (78/100).
Q:Is BAJAJ-AUTO fundamentally strong for long-term investment?
Yes, BAJAJ-AUTO exhibits solid fundamental strength with a 77/100 score, driven by a return on equity of 27.7% and a debt-to-equity ratio of 0.57.
Q:Does BAJAJ-AUTO pass the Coffee Can Investing filter?
Yes! BAJAJ-AUTO satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does BAJAJ-AUTO compare against other Automobile and Auto Components peers?
Within India's Automobile and Auto Components sector, BAJAJ-AUTO trades at a P/E of 27.34 and generates an ROCE of 25.4%. Compare its 5-Pillar score of 77/100 against top sector peers like Maruti Suzuki India Ltd. (71/100), Mahindra & Mahindra Ltd. (72/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.