2QFY2016 Result Update | Automobile
October 26, 2015
Bajaj Auto
ACCUMULATE
CMP
`2,514
Performance Highlights
Target Price
`2,672
Y/E March (` cr)
2QFY16
2QFY15 % chg (yoy)
1QFY16 % chg (qoq)
Investment Period
12 Months
Net Sales
6,098
5,963
2.3
5,613
8.6
EBITDA
1,317
1,127
16.9
1,140
15.6
Stock Info
EBITDA Margin (%)
21.6
18.9
270 bp
20.3
130 bp
Sector
Automobile
Adj. net profit
933
833
12.0
1,015
(8.1)
Market Cap (` cr)
72,075
Source: Company, Angel Research
Net Debt (` cr)
(9,628)
Results marginally ahead of estimates on strong operating performance: Bajaj
Beta
0.8
Auto (BAL)’s 2QFY2016 results have come in marginally ahead of our estimates,
52 Week High / Low
2,690/1,914
owing to a robust operating performance, despite flattish volumes and high
Avg. Daily Volume
48,189
competitive intensity.
Face Value (`)
10
Revenues grew marginally by 2% yoy to `6,098cr, coming slightly ahead of our
BSE Sensex
27,471
estimates of `5,960cr. Volumes remained flat in both the domestic (due to rural
Nifty
8,295
weakness) as well as export (due to slowdown in Nigeria and high base effect of
Reuters Code
BAJA.BO
the corresponding previous year) markets. However, higher INR/USD realization
Bloomberg Code
[email protected]
during the quarter of INR65.2/USD as against INR61.5/USD in 2QFY2015,
coupled with a better product, mix led to a marginal top-line growth. Operating
margin at 21.6% was ahead of our estimate of 21.1%, primarily driven by higher
Shareholding Pattern (%)
export realisation. Given the robust operating performance, the Adj Net Profit at
Promoters
49.3
`933cr, was slightly ahead of our expectation of `919cr.
MF / Banks / Indian Fls
16.4
Outlook and valuation: The domestic motorcycle industry is likely to remain
FII / NRIs / OCBs
18.1
sluggish in the near term given the weakness in rural demand. However, BAL is
Indian Public / Others
16.2
likely to outperform the industry with new launches scheduled in both the
commuter and the sport segments. Also, the relatively higher contribution of
urban geographies in BAL’s sales should help the company in mitigating the rural
Abs. (%)
3m 1yr 3yr
slowdown. Further, export volumes are expected to revive from 2HFY2016, given
Sensex
(3.2)
2.3
46.8
the company’s entry into newer markets, initiation of price cuts by partly passing
Bajaj Auto
1.0
(0.6)
42.0
on the benefits of higher USD realization, and owing to the low base effect of the
corresponding previous year period. Also given the trend of INR depreciation vis a
vis the USD, the margins are likely to remain high for BAL. Given the above
3-year price chart
positives, we upgrade our recommendation on the stock from “Neutral” to
2,800
“Accumulate” with a revised price target of `2,672 based on 17x FY2017
earnings.
2,400
Key financials (Standalone)
2,000
Y/E March (` cr)
FY2014
FY2015 FY2016E
FY2017E
Net Sales
20,150
21,612
24,115
27,600
1,600
% chg
0.8
7.3
11.6
14.4
1,200
Net Profit
3,242
3,101
3,957
4,545
% chg
6.5
(4.4)
27.6
14.9
EBITDA (%)
20.4
19.0
21.3
21.0
Source: Company, Angel Research
EPS (`)
112.1
107.2
136.8
157.2
P/E (x)
22.4
23.4
18.4
16.0
P/BV (x)
7.8
7.0
5.9
5.0
RoE (%)
34.8
27.0
32.2
31.5
RoCE (%)
46.8
40.3
44.8
43.5
Bharat Gianani
EV/Sales (x)
3.2
3.0
2.6
2.2
022-3935 7800 Ext: 6817
EV/EBITDA (x)
15.8
15.6
12.3
10.5
[email protected]
Source: Company, Angel Research; Note: CMP as of October 23, 2015
Please refer to important disclosures at the end of this report
1
Bajaj Auto | 2QFY2016 Result Update
Exhibit 1: Quarterly financial performance (Standalone)
Y/E March (` cr)
2QFY16
2QFY15
% chg (yoy)
1QFY16
% chg (qoq) 1HFY16 1HFY15
% chg (yoy)
Total operating income
6,098
5,963
2.3
5,613
8.6
11,711
11,216
4.4
Raw material consumption
4,055
4,110
(1.3)
3,773
7.5
7,828
7,790
0.5
% of total operating income
66.5
68.9
67.2
66.8
69.5
Employee expense
242
210
15.0
244
(0.8)
485
425
14.3
% of total operating income
4.0
3.5
4.3
4.1
3.8
Other expenditure
484
516
(6.2)
457
5.8
949
977
(2.8)
% of total operating income
7.9
8.7
8.1
8.1
8.7
Total expenditure
4,781
4,836
(1.2)
4,474
6.9
9,263
9,192
0.8
% of total operating income
78.4
81.1
79.7
79.1
82.0
EBIDTA
1,317
1,127
16.9
1,140
15.6
2,449
2,023
21.0
EBITDA margin (%)
21.6
18.9
20.3
20.9
18.0
Depreciation
78
69
13.7
78
(0.5)
156
138
13.5
EBIT
1,392
1,172
18.8
1,498
(7.1)
2,890
2,247
28.6
Other Income
153
114
34.4
437
(65.1)
589
333
77.1
Net Interest exp (inc)
0
0
440.0
0
237.5
0
0
118.8
Profit before tax (PBT)
1,391
1,172
18.8
1,498
(7.1)
2,889
2,247
28.6
Taxes
458
241
90.6
483
(5.1)
942
576
63.6
% of PBT
32.9
20.5
32.3
32.6
25.6
Profit after tax (PAT)
933
591
57.9
1,015
(8.1)
1,948
1,331
46.4
Extraordinary income/(expense)
-
(242)
-
(242)
Adjusted PAT
933
833
12.0
1,015
(8.1)
1,948
1,573
23.9
Equity capital
289.4
289.4
289.4
289.4
289.4
Reported EPS (`)
32.2
20.4
57.9
35.1
(8.1)
67.3
46.0
46.4
Adjusted EPS (`)
32.3
28.8
12.0
35.1
(8.1)
67.4
54.4
23.9
Source: Company, Angel Research
Exhibit 2: 2QFY2016 - Actual vs Angel estimates
Y/E March (` cr)
Actual
Estimates
Variation (%)
Net Sales
6,098
5,960
2.3
EBITDA
1,317
1,258
4.7
EBITDA margin (%)
21.6
21.1
50 bp
Adjusted PAT
933
919
1.5
Source: Company, Angel Research
October 26, 2015
2
Bajaj Auto | 2QFY2016 Result Update
Exhibit 3: Quarterly volume performance
Y/E March
2QFY16
2QFY15
% chg (yoy) 1QFY16
% chg (qoq) 1HFY2016 1HFY2015
% chg (yoy)
Motorcycles (Domestic)
469,330
461,651
1.7
485,818
(3.4)
955,148
952,492
0.3
Motorcycles (Exports)
433,767
437,502
(0.9)
389,417
11.4
823,184
821,519
0.2
Total Motorcycles
903,097
899,153
0.4
875,235
3.2
1,778,332
1,774,011
0.2
Three wheeler (Domestic)
67,117
74,838
(10.3)
50,715
32.3
117,832
130,460
(9.7)
Three wheeler (Exports)
86,382
81,591
5.9
87,079
(0.8)
173,461
139,541
24.3
Total Three wheeler
153,499
156,429
(1.9)
137,794
11.4
291,293
270,001
7.9
Overall Domestic
536,447
536,489
(0.0)
536,533
(0.0)
1,072,980
1,082,952
(0.9)
Overall Exports
520,149
519,093
0.2
476,496
9.2
996,645
961,060
3.7
Total volumes
1,056,596
1,055,582
0.1 1,013,029
4.3
2,069,625
2,044,012
1.3
Source: Company, Angel Research
BAL’s motorcycle volumes remained flat for a second consecutive quarter. In
the domestic market, BAL continued to gain market share in a sluggish
industry scenario, reporting a marginal growth of 2%. In the export markets,
sales dipped marginally, impacted by weak demand in Nigeria and owing to
the high base of the corresponding previous year period.
Realisation/vehicle grew 2% yoy to `57,712, mainly due to higher export
realization, higher spare part revenues, and implementation of price hikes.
Contribution/vehicle improved 10% yoy due to soft commodity prices and a
better mix.
Exhibit 4: 2W volumes remain flat
Exhibit 5: Realisation and contribution/vehicle trend
40
70,000
25,000
30
60,000
20,000
20
50,000
10
40,000
15,000
30,000
0
10,000
(10)
20,000
5,000
(20)
10,000
(30)
0
0
2W Dom grwth (%)
2W Exp grwth (%)
2W Total grwth (%)
Realisation/vehicle (`)
Contribution/vehicle (`)
Source: SIAM, Angel Research
Source: Company, Angel Research
BAL’s market share in the motorcycle segment remained stable at 17.7% in
2QFY2016. However, its overall two-wheeler market share declined owing to
its absence in the fast growing scooter segment.
Export realization continued to improve, given the favourable INR/USD
movement. BAL realized INR65.2/USD in 2QFY2016 as against INR61.5/USD
accrued in 2QFY2015.
October 26, 2015
3
Bajaj Auto | 2QFY2016 Result Update
Exhibit 6: Domestic market share stable
Exhibit 7: Export Realisation trend
22.6
68
25
65.2
20.3
63.9
18.9
18.5
65
62.8
62.8
17.7
17.9
17.7
20
16.4
16.3
16.6
61.5
15.2
60.9
60.9
14.4
62
60.2
59.9
13.4
15
12.8
12.4
12.2
11.0
11.0
11.3
9.8
59
55.6
10
56
5
53
0
50
Motorcycle Market share (%)
Two wheeler market share (%)
Export Realisation (INR/USD)
Source: SIAM, Angel Research
Source: Company, Angel Research
BAL’s operating margin at 21.6% for the quarter was ahead of our estimate of
21.1%. Soft commodity prices coupled with higher export realization boosted
margins.
Bouyed by the robust operating performance, the Adj Net Profit at `933cr was
marginally ahead of our estimates of `919cr.
Exhibit 8: Operating margin beats estimate
Exhibit 9: Adj PAT ahead of expectations
1,400
25
1,200
20
1,200
1,000
22
18
1,000
800
19
16
800
600
600
16
14
400
400
13
12
200
200
0
10
0
10
EBIDTA (` cr)
EBIDTA Margin %
PAT (` cr)
PAT Margin %
Source: Company, Angel Research
Source: Company, Angel Research
October 26, 2015
4
Bajaj Auto | 2QFY2016 Result Update
Conference call - Key highlights
The domestic motorcycle industry continues to remain under pressure,
declining by 4% yoy in 1HFY2016. Weak rural sentiments on account of
deficient rains and only a moderate increase in MSPs impacted demand. As
per BAL, the early part of the festive season (upto Dusherra) was sluggish with
retail sales continuing to decline by 5-7%. BAL expects industry volumes to
remain sluggish in the near term given the weak rural sentiments.
BAL expects to regain market share with the launch of new products. It aims to
launch a new brand in the commuter M3 segment in 4QFY2016 and new
Avenger bikes in the sport segment. BAL is aiming for a market share of 21%
by end of FY2016 as against its current market share of 17.7%.
Recently the Maharashtra government has released 1.5 lakh permits for three-
wheelers. BAL expects the benefits of these permit sales to start accruing from
4QFY2016. Also, BAL expects export of three-wheelers (3W) to pick up in
2HFY2016. Overall, BAL is expecting total 3W sales of 585,000 units in
FY2016, implying a growth of 13%.
BAL has commenced initial shipments of the quadricycle “Qute” to select
export markets where it has received the EU emission approval. It expects sales
momentum to pick up in FY2017, after the initial feedback. It is awaiting the
Supreme Court’s judgment before it can launch the product in the domestic
market. BAL currently has a capacity to manufacture 60,000 units per annum.
BAL is planning to re-enter the 3W cargo segment with a new launch in
4QFY2016.
BAL has commenced taking range forward hedges for FY2017 exports. It is
targeting to get a minimum rate of INR66 per USD for FY2017.
BAL expects commodity prices to remain benign in the near term.
BAL has hiked domestic two-wheeler prices by
`500-`2,000/unit from
September 1, 2015. In the domestic three-wheeler segment, BAL hiked prices
by `2,000-3,000/unit.
BAL has guided for a capex of `300-400cr per annum over the next two years.
Effective October 1, 2015, BAL has cut prices in export markets, to partly pass
on the benefits of higher dollar realization. As per the Management, the
company has rationalized prices to expand in the export markets. As per BAL,
the net impact of price hikes in the domestic market and price cuts in the
export markets would lead to improvement in the overall realization.
October 26, 2015
5
Bajaj Auto | 2QFY2016 Result Update
Investment arguments
Exports to be the key growth driver: BJAUT registered a strong exports CAGR
of ~11% during FY2011-15. We expect volumes to grow in double digits, ie
at a CAGR of ~12% over FY2015-17E. We expect growth to be driven by
market share gains in Africa and Latin America at the expense of Chinese
players who currently dominate these regions with a market share of ~70%.
BAL, with the first mover advantage, wide-spread reach with an established
distribution network and a strong brand presence in the major markets of
Africa and Latin America is well poised to capitalize on the growth opportunity.
Demand recovery, new launches key to domestic growth: BAL’s domestic
motorcycle performance had been severely impacted during FY2014-2015
period due to slowdown in demand and increasing competition, leading to
poor volumes (down ~15% yoy) and erosion in market share (down ~800bp
to 16.5%). We attribute this to the disappointing performance of the flagship
brand, Discover whose monthly run rate has dropped by 25-30%. We expect
new launches across segments (commuter, executive and premium) to provide
stability to domestic volumes going ahead and gradually help the company to
consolidate its market share. Also, we expect demand in the premium
motorcycle segment to accelerate in FY2016/17 on expected recovery in
urban demand and expect BAL to be the key beneficiary of this trend. Thus, we
expect domestic motorcycle volumes to grow at a CAGR of 10% over the next
two years.
Three-wheelers registering healthy growth; quadricycles provide additional
growth opportunity: BAL has a strong presence in the three-wheeler market,
with an overall market share (including exports) of ~55%. The three-wheeler
segment fetches higher margins than the company’s two-wheeler business.
The outlook for three-wheelers remains strong (we expect 7% CAGR over the
next two years) backed by healthy demand in both the domestic as well as
export markets. Further, BAL aims to launch the new quadricycle (RE60) in
4QFY2016, providing an additional growth opportunity.
Outlook and valuation
The domestic motorcycle industry is likely to remain sluggish in the near term given
the weakness in rural demand. However, BAL is likely to outperform the industry
with new launches scheduled in both, the commuter and the sports segments. Also,
the relatively higher contribution of urban geographies in BAL’s sales should help
the company in mitigating the rural slowdown. Further, export volumes are
expected to revive from 2HFY2016, given the company’s entry into newer markets,
initiation of price cuts by partly passing on the benefits of higher USD realization,
and owing to the low base effect of the corresponding previous year period. Also
given the trend of INR depreciation vis a vis the USD, the margins are likely to
remain high for BAL. Given the above positives, we upgrade our recommendation
on the stock from “Neutral” to “Accumulate” with a revised price target of `2,672
based on 17x FY2017 earnings.
October 26, 2015
6
Bajaj Auto | 2QFY2016 Result Update
Exhibit 10: Key assumptions - Volumes
Y/E March (` cr)
FY2012
FY2013
FY2014
FY2015
FY2016E
FY2017E
Motorcycles (Domestic)
2,566,757
2,463,863
2,099,230
1,770,778
1,942,148
2,160,000
Motorcycles (Exports)
1,267,648
1,293,231
1,323,173
1,521,306
1,663,184
1,866,000
Total Motorcycles
3,834,405
3,757,094
3,422,403
3,292,084
3,605,332
4,026,000
Three wheeler (Domestic)
202,979
226,131
186,856
234,345
250,749
265,794
Three wheeler (Exports)
312,176
253,926
260,762
284,772
326,544
324,206
Total Three wheeler
515,155
480,057
447,618
519,117
577,293
590,000
Quadricycles
-
15,000
60,000
Total volumes
4,349,560
4,237,151
3,870,021
3,811,201
4,197,625
4,676,000
% chg
13.7
(2.6)
(8.7)
(1.5)
10.1
11.4
Source: Company, Angel Research
Company background
Bajaj Auto (BJAUT) is the third largest 2W manufacturer in the country (~18%
market share) and a market leader in the 3W segment (~45% market share).
BJAUT has three manufacturing facilities in India, located at Waluj, Chakan and
Pantnagar, with a total installed capacity (2W - 4.8mn and 3W - 0.6mn) of 5.4mn
units. BJAUT also happens to be one of India's largest auto exporters, with exports
forming ~50% of revenue in FY2015. The two dominant brands, Discover and
Pulsar account for ~65% of the company’s motorcycle volumes.
October 26, 2015
7
Bajaj Auto | 2QFY2016 Result Update
Profit and loss statement (Standalone)
Y/E March (` cr)
FY2012
FY2013
FY2014
FY2015
FY2016E
FY2017E
Total operating income
19,529
19,997
20,150
21,612
24,115
27,600
% chg
19.1
2.4
0.8
7.3
11.6
14.4
Total expenditure
15,809
16,362
16,044
17,495
18,980
21,800
Net raw material costs
14,103
14,407
13,877
14,850
16,117
18,595
Other mfg costs
327
382
434
485
535
585
Employee expenses
540
639
727
897
982
1,119
Other
839
934
1,007
1,263
1,347
1,501
EBITDA
3,720
3,635
4,106
4,117
5,135
5,800
% chg
17.3
(2.3)
12.9
0.3
24.7
13.0
(% of total op. income)
19.0
18.2
20.4
19.0
21.3
21.0
Depreciation & amortization
146
164
180
267
304
313
EBIT
3,574
3,471
4,633
4,432
5,740
6,517
% chg
17.3
(2.9)
8.6
(4.3)
29.5
13.5
(% of total op. income)
18.3
17.4
23.0
20.5
23.8
23.6
Interest and other charges
22
1
0
6
1
1
Other income
608
795
706
582
909
1,030
Recurring PBT
4,160
4,266
4,632
4,425
5,739
6,516
% chg
14.8
2.5
8.6
(4.5)
29.7
13.5
Extraordinary income/(exp.)
(134)
-
0
(340.3)
0
0
PBT (reported)
4,026
4,266
4,632
4,085
5,739
6,516
Tax
1,022
1,223
1,362
1,271
1,782
1,971
(% of PBT)
25.4
28.7
29.4
28.7
31.1
30.3
PAT (reported)
3,004
3,044
3,242
2,814
3,957
4,545
ADJ. PAT
3,138
3,044
3,242
3,101
3,957
4,545
% chg
20.0
(3.0)
6.5
(4.4)
27.6
14.9
(% of total op. income)
16.1
15.2
16.1
13.0
16.4
16.5
Basic EPS (`)
103.8
105.2
112.1
107.2
136.8
157.2
Adj. EPS (`)
108.4
105.2
112.1
107.2
136.8
157.2
% chg
20.0
(3.0)
6.5
(4.4)
27.6
14.9
October 26, 2015
8
Bajaj Auto | 2QFY2016 Result Update
Balance sheet statement (Standalone)
Y/E March (` cr)
FY2012 FY2013 FY2014 FY2015
FY2016E
FY2017E
SOURCES OF FUNDS
Equity share capital
289
289
289
289
289
289
Reserves & surplus
5,752
7,613
9,319
10,787
12,626
14,684
Shareholders’ funds
6,041
7,902
9,608
11,076
12,916
14,973
Total loans
97
71
145
145
145
145
Deferred tax liability
48
115
143
143
143
143
Other long term liabilities
157
122
-
-
-
-
Long term provisions
112
135
121
120
120
130
Total Liabilities
6,456
8,345
10,017
11,485
13,324
15,392
APPLICATION OF FUNDS
Gross block
3,396
3,829
4,077
4,427
4,727
5,027
Less: Acc. depreciation
1,914
2,024
2,071
2,338
2,633
2,945
Net Block
1,482
1,804
2,006
2,089
2,094
2,082
Capital work-in-progress
42
294
144
150
150
150
Investments
4,883
6,430
8,550
9,000
10,000
11,000
Long term loans and adv.
601
462
720
970
1,240
1,540
Other noncurrent assets
1
1
1
1
1
1
Current assets
4,076
3,487
3,327
3,243
4,065
4,206
Cash
1,654
559
495
292
918
691
Loans & advances
1,025
1,312
978
969
956
1,031
Other
1,397
1,616
1,853
1,983
2,190
2,484
Current liabilities
4,628
4,134
4,730
3,968
4,226
3,587
Net current assets
(553)
(647)
(1,403)
(725)
(161)
619
Misc. exp. not written off
-
-
-
-
-
-
Total Assets
6,456
8,345
10,017
11,485
13,324
15,392
Note: Cash and bank balance includes term deposits with banks
October 26, 2015
9
Bajaj Auto | 2QFY2016 Result Update
Cash flow statement (Standalone)
Y/E March (` cr)
FY2012 FY2013 FY2014 FY2015 FY2016E FY2017E
Profit before tax
4,026
4,266
4,632
4,372
5,510
6,164
Depreciation
146
164
47
267
295
313
Change in working capital
332
(521)
693
(882)
63
(1,007)
Direct taxes paid
(1,148)
(1,239)
(1,390)
(1,271)
(1,625)
(1,818)
Less: Others
(162)
(535)
(87)
(251)
(270)
(290)
Cash Flow from Operations
3,193
2,134
3,894
2,235
3,972
3,361
(Inc.)/Dec. in fixed assets
(338)
(488)
(99)
(356)
(300)
(300)
(Inc.)/Dec. in investments
(94)
(1,353)
(2,119)
(450)
(1,000)
(1,000)
Others
(250)
563
Cash Flow from Investing
(682)
(1,278)
(2,218)
(806)
(1,300)
(1,300)
Issue of equity
-
-
-
-
-
-
Inc./(Dec.) in loans
(158)
-
(48)
-
-
-
Dividend paid (Incl. Tax)
(1,154)
(1,300)
(1,692)
(1,633)
(2,045)
(2,288)
Others
(252)
(179)
-
-
-
-
Cash Flow from Financing
(1,564)
(1,479)
(1,740)
(1,633)
(2,045)
(2,288)
Inc./(Dec.) in cash
947
(622)
(63)
(204)
627
(227)
Opening Cash balances
229
1,176
559
495
292
918
Closing Cash balances
1,176
553
495
292
918
691
Note: Closing Cash balances excludes term deposits with banks
October 26, 2015
10
Bajaj Auto | 2QFY2016 Result Update
Key ratios
Y/E March
FY2012
FY2013
FY2014
FY2015
FY2016E
FY2017E
Valuation Ratio (x)
P/E (on FDEPS)
23.2
23.9
22.4
23.4
18.4
16.0
P/CEPS
22.1
22.7
21.3
23.6
17.1
15.0
P/BV
12.0
9.6
7.8
7.0
5.9
5.0
Dividend yield (%)
1.8
1.8
2.0
1.9
2.4
2.8
EV/Sales
3.5
3.4
3.2
3.0
2.6
2.2
EV/EBITDA
18.2
18.4
15.8
15.6
12.3
10.5
EV / Total Assets
10.5
8.0
6.5
5.8
4.9
4.0
Per Share Data (`)
EPS (Basic)
108.4
105.2
112.1
107.2
136.8
157.2
EPS (fully diluted)
108.4
105.2
112.1
107.2
136.8
157.2
Cash EPS
113.5
110.9
118.3
106.5
147.3
167.9
DPS
45.0
45.0
50.0
48.2
61.6
70.7
Book Value
208.8
263.2
322.2
359.7
424.5
498.9
Dupont Analysis
EBIT margin
18.3
21.3
23.0
20.5
23.8
23.6
Tax retention ratio
74.6
0.7
0.7
0.7
0.7
0.7
Asset turnover (x)
3.9
2.6
2.1
2.1
2.0
1.9
ROIC (Post-tax)
52.7
40.0
34.4
30.1
32.5
31.5
Cost of Debt (Post Tax)
8.5
0.2
0.6
4.1
0.5
0.6
Leverage (x)
(1.1)
(0.9)
(0.9)
(0.9)
(0.8)
(0.8)
Operating ROE
5.6
5.8
2.8
6.7
5.4
7.3
Returns (%)
ROCE (Pre-tax)
59.5
52.0
46.8
40.3
44.8
43.5
Angel ROIC (Pre-tax)
72.6
54.8
49.1
42.2
47.1
45.1
ROE
57.3
40.0
34.8
27.0
32.2
31.5
Turnover ratios (x)
Asset Turnover (Gross Block)
5.8
5.2
4.9
5.3
5.4
5.7
Inventory / Sales (days)
11
12
12
14
12
12
Receivables (days)
7
14
14
12
13
13
Payables (days)
43
46
52
43
44
43
WC cycle (ex-cash) (days)
(35)
(20)
(26)
(17)
(19)
(18)
Solvency ratios (x)
Net debt to equity
(1.1)
(0.9)
(0.9)
(0.9)
(0.8)
(0.8)
Net debt to EBITDA
(1.7)
(1.9)
(2.2)
(2.3)
(2.1)
(2.0)
Interest Coverage (EBIT / Int.)
160.7
7,901.4
9,454.2
682.8
7,653.6
6,517.4
October 26, 2015
11
Bajaj Auto | 2QFY2016 Result Update
Research Team Tel: 022 - 39357800
E-mail: [email protected]
Website: www.angelbroking.com
DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment
decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should
make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the
companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine
the merits and risks of such an investment.
Angel Broking Pvt. Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make
investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this
document are those of the analyst, and the company may or may not subscribe to all the views expressed within.
Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and
trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's
fundamentals.
The information in this document has been printed on the basis of publicly available information, internal data and other reliable
sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this
document is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way
responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.
Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannot
testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.
While Angel Broking Pvt. Limited endeavours to update on a reasonable basis the information discussed in this material, there may be
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Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the
latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may
have investment positions in the stocks recommended in this report.
Disclosure of Interest Statement
Bajaj Auto
1. Analyst ownership of the stock
No
2. Angel and its Group companies ownership of the stock
No
3. Angel and its Group companies' Directors ownership of the stock
No
4. Broking relationship with company covered
No
Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors
Ratings (Returns):
Buy (> 15%)
Accumulate (5% to 15%)
Neutral (-5 to 5%)
Reduce (-5% to -15%)
Sell (< -15%)
October 26, 2015
12