Presented to: Prof.

Vineeta Mishra Presented by: Amit Sachdeva Megha Aggarwal Rahul Verma

 Founded in 1926 by Jamunalal Bajaj. His son,Kamalnayan bajaj, then 27, took over the reins of

business in 1942. The present chairman of group ,Rahul bajaj, took charge of the business in 1965.Under his leadership,the turnover of the bajaj auto has gone up from Rs72 million to Rs.100.76 billion. The Co. was incorporated on April30,2007 as a wholly owned subsidiary of erstwhile bajaj auto ltd. With the name Bajaj investment & holding ltd. The Co. received the certificate of commencement of business 0n May7,2007

 Bajaj is Indias second largest motorcycle maker,

smaller than Honda Motorcycle Scooter India, but larger than TVS Motor co. ltd. Bajaj Auto, is ranked as the worlds fourth largest two and three wheeler manufacturer The company is well known for their R&D, product development, process engineering and low cost manufacturing skills.

 In the mid 1940s, BAL started as an important of two and three

wheeler in the early 1960s, BAL , in collaboratin with piaggo, started manufacturing vespa brand scooters at its plant near pune, Maharashtra. In 1970, BAL started manufacturing scooter unde the Bajaj brand. Bals first scooter model under the bajaj brand was introduced in 1972 is Chetak In the late 1990s the Indian two wheeler market witnesses a shift in consumer preferences. In 2005-06 scooter sales in the indian market were around 1 million units annually and considered predominantly of gearless scooters. In early 2006 BAL announced that it would launch two new models of gearless scooters in 20006-07

 In 2002-03, Bajaj achieved a turnover of Rs.5071 crore

and (EBITDA) of Rs.817 crore.

EBITDA = Revenue Costs

Return on operating capital, which had dipped to a

low of 14% in 2000-01, increased to 60% in 2002-03.

Debtors declined from Rs. 198 crores on 31st March 2002, to Rs. 167 crore on 31st March 2003 a reduction of 16%.

 Bajajs debt-equity ratio was 0.26 and interest coverage

was 717.76 times in 2003.

In 2003, Bajaj had Rs.3139.42 crore of reserve & surplus. In September 2000, Bajaj had spent about Rs 720 crore

to buy back 15% of its equity.

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Attributes P/E Ratio EPS NET PROFIT MARGIN(%) LAST DIVIDENT (%) RETURN ON AVG. EQUITY Bajaj Auto 31.74 45.39 7.40 220 38.92 Hero Honda 25.75 64.18 10.30 1000 33.72 12.75

GROSS PROFIT 11.06 MARGIN(%)

 Sales of 136,780 units are its highest ever sales. Demand for commercial vehicles continue to be strong. Share in domestic market 40%.

Working capital is negative for all the year.

Current ratio and liquid ratio is also showing a decreasing trend.

In the Motorcycle segment BOXER estimated 45% sales in the entry level market. However Pulsar accounted for 17000units sales in a month in 2002.