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7/31/2019 SRI Research V1
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Financial Analysis on
2 Wheeler Automobile Indusof India
Submitted By:
Shivangi Agarwal - 14
Khoont Keyur S. – 15
Neelam Singh – 16
Neha Parmar – 24
Kunal Shah – 43
Under the guidance of:
Dr. S. Vijayalakshmi
Section - C
Semester – II, MBA 2011-13
______________________________________
IBS Hyderabad
A constituent of the ICFAI Foundation for Higher Edu
Dontanpalli, Shankerpalli Road,
Hyderabad –
501203, A.P., India
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Sheet # INDEX
1 Profit & Loss Statement
2 Balance Sheet
3 Leverage Analysis
4 Ratio Analysis5 Liquidity Ratio - Graphical
6 Activity Ratio - Graphical
7 Leverage Ratio - Graphical
8 Profitability Ratio - Graphical
9 Capital Structure
10 Changes in Working Capital / Fund Flow
11 Working Capital Comperasion - Graphical
12 Working Capital Policy
13 Risk(Liquidity) - Return(Profitability) Trade-off
14 Forecasting - Bajaj Auto
15 Forecasting - TVS Motor
16 Forecasting - Hero MotoCorp
17 Forecasting - Kinetic Engineeting
18 Forecasting - LML
ry
cation
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Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Income
Sales Turnover 17,386.51 12,420.95 9,310.24 9,856.66 10,741.91
Excise Duty 934.71 607.70 610.07 1,029.51 1,321.67
Net Sales 16,451.80 11,813.25 8,700.17 8,827.15 9,420.24Other Income 1,176.00 22.50 -6.20 170.27 567.16
Stock Adjustments 82.79 47.60 -24.49 67.85 -0.90
Total Income 17,710.59 11,883.35 8,669.48 9,065.27 9,986.50
Expenditure
Raw Materials 11,965.30 8,187.11 6,502.10 6,760.04 6,969.50
Power & Fuel Cost 86.61 70.35 60.89 69.20 79.34
Employee Cost 494.33 411.76 366.67 350.09 310.07
Other Manufacturing Expenses 61.77 57.54 57.08 53.72 74.53
Selling and Admin Expenses 450.18 407.61 381.73 390.15 457.17
Miscellaneous Expenses 237.76 221.94 225.56 209.63 230.89
Preoperative Exp Capitalised -16.66 -15.67 -14.42 -23.04 -32.05
Total Expenses 13,279.29 9,340.64 7,579.61 7,809.79 8,089.45
Operating Profit 3,255.30 2,520.21 1,096.07 1,085.21 1,329.89
PBDIT 4,431.30 2,542.71 1,089.87 1,255.48 1,897.05
Interest 1.69 5.98 21.01 5.16 5.34
PBDT 4,429.61 2,536.73 1,068.86 1,250.32 1,891.71
Depreciation 122.84 136.45 129.79 173.96 190.26
Other Written Off 0.00 0.00 0.00 1.12 0.39
Profit Before Tax 4,306.77 2,400.28 939.07 1,075.24 1,701.06
Extra-ordinary items 46.77 26.87 18.72 59.32 26.60
PBT (Post Extra-ord Items) 4,353.54 2,427.15 957.79 1,134.56 1,727.66Tax 1,011.02 710.12 301.61 378.78 490.09
Reported Net Profit 3,342.52 1,717.03 656.18 755.78 1,237.57
Total Value Addition 1,313.99 1,153.53 1,077.51 1,049.75 1,119.95
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 1,157.47 578.73 318.30 289.37 404.73
Corporate Dividend Tax 187.77 96.12 54.10 49.18 68.78
Per share data (annualised)
Equity Shares in issue (lakhs) 2,893.67 1,446.84 1,446.84 1,446.84 1,011.84
Face Value of Equity Shares 10.00 10.00 10.00 10.00 10.00
Earning Per Share (Rs) 115.51 118.67 45.35 52.24 122.31
Equity Dividend (%) 4.00 4.00 2.20 2.00 4.00
Book Value (Rs) 169.69 202.40 129.23 109.73 546.96
0
DetailsBajaj Auto
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Particular Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 Particular
Opening Stock 362.76 272.84 358.65 275.31 529.83 Sales Turnover
Purchases Excise Duty
Raw Materials 11,965.30 8,187.11 6,502.10 6,760.04 6,969.50Closing stock
Direct expenses Stock Adjustment
Power & Fuel Cost 86.61 70.35 60.89 69.2 79.34
Employee Cost 494.33 411.76 366.67 350.09 310.07
Other Manufacturing Expenses 61.77 57.54 57.08 53.72 74.53
Total 12,608.01 8,726.76 6,986.74 7,233.05 7,433.44 Total
Selling and Admin Expenses 450.18 407.61 381.73 390.15 457.17 Gross Profit
Miscellaneous Expenses 237.76 221.94 225.56 209.63 230.89 Preoperative Exp
Net Profit(EBDIT) 4431.3 2542.71 1089.87 1255.48 1897.05 Other Income
Total 5119.24 3172.26 1697.16 1855.26 2585.11 Total
Operating Profit 3,255.30 2,520.21 1,096.07 1,085.21 1,329.89
EBDIT 4,431.30 2,542.71 1,089.87 1,255.48 1,897.05
Depreciation 122.84 136.45 129.79 173.96 190.26
Other Written Off 0.00 0.00 0.00 1.12 0.39
EBIT 4,308.46 2,406.26 960.08 1,080.40 1,706.40
Interest 1.69 5.98 21.01 5.16 5.34
EBT 4,306.77 2,400.28 939.07 1,075.24 1,701.06
Extra-ordinary items 46.77 26.87 18.72 59.32 26.6PBT (Post Extra-ord Items) 4,353.54 2,427.15 957.79 1,134.56 1,727.66
Tax 1,011.02 710.12 301.61 378.78 490.09
EAT 3,342.52 1,717.03 656.18 755.78 1,237.57
Equity Shares in issue (lakhs) 2893.67 1446.84 1446.84 1446.84 1011.84
Earning Per Share (Rs) 115.5114 118.6745 45.35263 52.2366 122.3089
Trading profit and loss a/c
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Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
17,387 12,421 9,310 9,857 10,742
-934.71 -607.70 -610.07 -1,029.51 -1,321.67
547.28 446.21 338.84 349.61 309.70
82.79 47.6 -24.49 67.85 -0.9
16,534.59 11,860.85 8,675.68 8,895.00 9,419.34
3,926.58 3,134.09 1,688.94 1,661.95 1,985.90
16.66 15.67 14.42 23.04 32.05
1176 22.5 -6.2 170.27 567.16
5119.24 3172.26 1697.16 1855.26 2585.11
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Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Sources Of Funds
Total Share Capital 289.37 144.68 144.68 144.68 101.18
Equity Share Capital 289.37 144.68 144.68 144.68 101.18
Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 4,620.85 2,783.66 1,725.01 1,442.91 5,433.14
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 4,910.22 2,928.34 1,869.69 1,587.59 5,534.32
Secured Loans 23.53 12.98 0.00 6.95 22.46
Unsecured Loans 301.62 1,325.60 1,570.00 1,327.39 1,602.97
Total Debt 325.15 1,338.58 1,570.00 1,334.34 1,625.43
Total Liabilities 5,235.37 4,266.92 3,439.69 2,921.93 7,159.75
Application Of Funds
Gross Block 3,395.16 3,379.25 3,350.20 2,994.68 3,178.54
Less: Accum. Depreciation 1,912.45 1,899.66 1,807.91 1,726.07 1,904.94
Net Block 1,482.71 1,479.59 1,542.29 1,268.61 1,273.60
Capital Work in Progress 149.34 120.84 106.48 34.74 107.62
Investments 4,795.20 4,021.52 1,808.52 1,857.14 6,447.53
Inventories 547.28 446.21 338.84 349.61 309.70
Sundry Debtors 362.76 272.84 358.65 275.31 529.83
Cash and Bank Balance 155.45 100.20 135.68 54.74 62.16
Total Current Assets 1,065.49 819.25 833.17 679.66 901.69
Loans and Advances 3,891.66 2,291.29 1,567.09 1,099.68 2,925.24
Fixed Deposits 401.04 1.21 1.19 1.33 21.32
Total CA, Loans & Advances 5,358.19 3,111.75 2,401.45 1,780.67 3,848.25Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 2,624.35 2,218.06 1,378.20 1,185.19 1,683.46
Provisions 3,925.72 2,248.72 1,224.15 834.04 2,833.79
Total CL & Provisions 6,550.07 4,466.78 2,602.35 2,019.23 4,517.25
Net Current Assets -1,191.88 -1,355.03 -200.90 -238.56 -669.00
Miscellaneous Expenses 0.00 0.00 183.30 0.00 0.00
Total Assets / Net Asset 5,235.37 4,266.92 3,439.69 2,921.93 7,159.75
Contingent Liabilities 959.66 818.25 924.96 1,129.29 811.66
Book Value (Rs) 169.69 202.40 129.23 109.73 546.96
Balance Sheet (in Rs. Crores)
DetailsBajaj Auto
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Liability Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Share capital
Equity Share Capital 289.37 144.68 144.68 144.68 101.18
Share Application Money 0.00 0.00 0.00 0.00 0.00Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Total Share Capital 289.37 144.68 144.68 144.68 101.18
Reserves and surplus
Reserves 4620.85 2783.66 1725.01 1442.91 5433.14
Revaluation Reserves 0 0 0 0 0
Share holders capital(NAV) 4,910.22 2,928.34 1,869.69 1,587.59 5,534.32
Secured Loan
Secured Loan 23.53 12.98 0.00 6.95 22.46
Unsecured loan
Unsecured loan 301.62 1,325.60 1,570.00 1,327.39 1,602.97
Current Liability and Provision
Deffered Credit 0 0 0 0 0
Current Liabilities 2624.35 2218.06 1378.2 1185.19 1683.46
Provisions 3925.72 2248.72 1224.15 834.04 2833.79
Total CL & Provisions 6550.07 4466.78 2602.35 2019.23 4517.25
Total Liability 11,785.44 8,733.70 6,042.04 4,941.16 11,677.00
Balance Sheet (in
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Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Fixed Assets
Gross Block 3395.16 3379.25 3350.2 2994.68 3178.54
Less: Accum. Depreciation 1912.45 1899.66 1807.91 1726.07 1904.94Net Block 1482.71 1479.59 1542.29 1268.61 1273.6
Capital Work in Progress 149.34 120.84 106.48 34.74 107.62
Investment 4,795.20 4,021.52 1,808.52 1,857.14 6,447.53
Current Assets loans and Advances
Inventories 547.28 446.21 338.84 349.61 309.70
Sundry Debtors 362.76 272.84 358.65 275.31 529.83
Cash and Bank Balance 155.45 100.2 135.68 54.74 62.16
Loans and Advances 3,891.66 2,291.29 1,567.09 1,099.68 2,925.24
Fixed Deposits 401.04 1.21 1.19 1.33 21.32
Total CA, Loans & Advances 5,358.19 3,111.75 2,401.45 1,780.67 3,848.25
Miscellaneous Expenses
Miscellaneous Expenses 0 0 183.3 0 0
Total Assets 11,785.44 8,733.70 6,042.04 4,941.16 11,677.00
Rs. Crores)
Assets
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LIQUIDITY RATIOS
1. Current Ratio
Current Ratio = Current asset / current liabilities
Years --> Mar '11 Mar '10 Mar '09 Mar '08
Total Current Assets 5,358.19 3,111.75 2,401.45 1,780.67
Current Liabilities 6,550.07 4,466.78 2,602.35 2,019.23
Current Ratio 0.82 0.70 0.92 0.88
Liquid Ratio
Liquid Ratio = Liquid asset / liquid or current liabilities
Mar '11 Mar '10 Mar '09 Mar '08
Liquid Assets 4,409.87 2,664.33 2,061.42 1,429.73
Liquid Liabilities 6,550.07 4,466.78 2,602.35 2,019.23
0.67 0.60 0.79 0.71
C. Super Quick Ratio / Absolute Liquid Ratio:-
Absolute Liquid Ratio = (Cash and Bank + Marketable securities) / current liabilities
Mar '11 Mar '10 Mar '09 Mar '08Check Cash & Bank Bal 155.45 100.20 135.68 54.74
Current Liabilities 6,550.07 4,466.78 2,602.35 2,019.23
0.02 0.02 0.05 0.03
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Turnover Ratios / Activity Ratios / Management Efficiency Ratios
a) Stock Turnover Ratio/Inventory Turnover Ratio
Stock Turnover Ratio = Cost of good sold or Sales / Average stock
Mar '11 Mar '10 Mar '09 Mar '08
Cost of goods sold 12,608.01 8,726.76 6,986.74 7,233.05
Average stock 496.745 392.525 344.225 329.655
25.38 22.23 20.30 21.94
A.1) Days of Inventory Holding
Days of Inventory Holding = No. of Operating Days / Inventory Turnover Ratio
Mar '11 Mar '10 Mar '09 Mar '08
Taken as a No. of Operating Days 360 360 360 360
Inventory Turnover Ratio 25.38125 22.23237 20.29702 21.94127
14.18 16.19 17.74 16.41
b) Debtors Turnover Ratio/Receivables Turnover Ratio
Debtors Turnover Ratio = Credit Sales / Average Debtors
Mar '11 Mar '10 Mar '09 Mar '08
Credit Sales 16,451.80 11,813.25 8,700.17 8,827.15
Average Debtors 317.8 315.745 316.98 402.57
51.76778 37.41389 27.44706 21.92699
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b.1) Average Collection Period (in Days)
Average Collection Period (in Days) = No. of Operating Days / Debtors Turnover Ratio
Mar '11 Mar '10 Mar '09 Mar '08
Taken as a No. of Operating Days 360.00 360.00 360.00 360.00
Debtors Turnover Ratio 51.76778 37.41389 27.44706 21.926996.954133 9.622094 13.11616 16.41812
Investment in Debtors (in Rs. Crores)
Investment in Debtors (in Rs. Crores) = Net Sales/ Average Collection Period (in Days)
Mar '11 Mar '10 Mar '09 Mar '08
Net Sales 16,451.80 11,813.25 8,700.17 8,827.15
Average Collection Period (in Days) 6.954133 9.622094 13.11616 16.41812
2365.759 1227.721 663.317 537.6468
c) Creditors Turnover Ratio
Creditors Turnover Ratio = Credit Purchases / Average creditors
Mar '11 Mar '10 Mar '09 Mar '08
Credit purchases 11,965.30 8,187.11 6,502.10 6,760.04
Is this zero Average Creditors
#DIV/0! #DIV/0! #DIV/0! #DIV/0!
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d) Assets Turnover Ratio
Assets Turnover Ratio = Cost of goods sold or Sales / Total Assets
Mar '11 Mar '10 Mar '09 Mar '08
Cost of Goods sold 12,608.01 8,726.76 6,986.74 7,233.05Check this Total Assets 5,235.37 4,266.92 3,439.69 2,921.93
2.408237 2.045213 2.031212 2.475436
e) Working Capital Turnover Ratio
Working Capital Turnover Ratio = Cost of Goods slod or sales / Working capital
Mar '11 Mar '10 Mar '09 Mar '08
Cost of Goods sold 12,608.01 8,726.76 6,986.74 7,233.05
Working Capital -1,558.86 -1,398.81 -545.03 -505.53
-8.087968 -6.238703 -12.819 -14.30786
`
Leverage Ratio
Long Term Solvency Ratios / Solvency Ratios:-
. Activity Ratio or Performance or Turnover Ratio:
a) Debt Equity Ratio
Debt Equity Ratio = Outsider's Fund / Shareholders Fund
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Mar '11 Mar '10 Mar '09 Mar '08
Check this - Outsiders' Fund 4,910.22 2,928.34 1,869.69 1,587.59
Check this - Shareholders fund 5,235.37 4,266.92 3,439.69 2,921.93
0.94 0.69 0.54 0.54
b) Proprietary Ratio/Equity Ratio/ Net worth Ratio/Shareholders Fund to Total Asset/ Net w
Proprietary Ratio = Shareholder's Fund / Total Assets
Mar '11 Mar '10 Mar '09 Mar '08
Check this - Shareholders Fund 4,910.22 2,928.34 1,869.69 1,587.59
Check this - Total Assets 5,235.37 4,266.92 3,439.69 2,921.93
0.938 0.686 0.544 0.543
c) Solvency Ratio
Solvency Ratio = Outsider's Fund / Total Assets
Mar '11 Mar '10 Mar '09 Mar '08
Outsider's Fund 325.15 1,338.58 1,570.00 1,334.34
Check this - Total Assets 5,235.37 4,266.92 3,439.69 2,921.93
0.062106 0.313711 0.456436 0.456664
d) Funded Debt to Total Capitalisation Ratio
Funded Debt to Capitalisation = Long Term Borrowings / Total Capital
Mar '11 Mar '10 Mar '09 Mar '08
check this Long Term Borrowings 0 0 0 0
Total Capital 289.37 144.68 144.68 144.68
0 0 0 0
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4. Profitability Ratios
a) Gross Profit Ratio
Gross Profit Ratio = Gross Profit / Sales * 100
Check Gross Profit 3,926.58 3,134.09 1,688.94 1,661.95
Check Sales 16,451.80 11,813.25 8,700.17 8,827.15
23.87% 26.53% 19.41% 18.83%
b) Operating Ratio
Operating Ratio = (cost of goods sold + other operating expenses)/Sales
Cost of goods sold 12,608.01 8,726.76 6,986.74 7,233.05
Check Operating expenses 749.71 687.09 664.37 653.50
Sales 16,451.80 11,813.25 8,700.17 8,827.15
81.19% 79.69% 87.94% 89.34%
c) Operating Profit Ratios
Operating Profit Ratios = Operation Ratio / Sales * 100
Operation Ratio 0.811931 0.796889 0.879421 0.893442
Sales 16,451.80 11,813.25 8,700.17 8,827.15
0.00% 0.01% 0.01% 0.01%
d) Net Profit Ratio
Net Profit Ratio = Net Profit / Sales * 100
Net Profit 3,342.52 1,717.03 656.18 755.78
Sales 16,451.80 11,813.25 8,700.17 8,827.15
20% 15% 8% 9%
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e) Interest Coverage Ratio/Debt Service Ratio
Interest Coverage Ratio = EBIT / Interest
EBIT 4,308.46 2,406.26 960.08 1,080.40
Interest 1.69 5.98 21.01 5.16
2549.385 402.3846 45.69634 209.3798
f) Earnings Per Share
Earnings Per Share = Net profit / No of Equity Shares
Net profit
No of Equity shares
#DIV/0! #DIV/0! #DIV/0! #DIV/0!
g) Price Earnings Ratio
Price Earnings Ratio = Market Price / EPS
Market Price
EPS
#DIV/0! #DIV/0! #DIV/0! #DIV/0!
h) Return On Shareholders Fund
Return On Shareholders Fund = Net profit / Shareholder's Fund * 100
Net profit
Shareholder's Fund
#DIV/0! #DIV/0! #DIV/0! #DIV/0!
i) Return on Investment / Total assets
Return on Investment / Total assets = Net profit / Total Assets * 100
Net profit
Total Assets#DIV/0! #DIV/0! #DIV/0! #DIV/0!
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Mar '07
3,848.25
4,517.25
0.85
Mar '07
3,517.23
4,517.25
0.78
Mar '0762.16
4,517.25
0.01
Mar '11 Mar '10 Mar '09 Mar '08
Series1 0.82 0.70 0.92 0.88
0.82
0.70
0.920.88
0.00
0.10
0.20
0.30
0.40
0.50
0.600.70
0.80
0.90
1.00
< - - C u r r e n t R a t i o n - - >
Current Ratio of Prestige Gardens
Mar '11 Mar '10 Mar '09 Mar '08
Series1 0.67 0.60 0.79 0.71
A x i s T i t l e
Chart Title
0.02
0.02
0.03
0.01
0.00 0.01 0.02 0.03 0.04 0.
Mar '11
Mar '10
Mar '09
Mar '08
Mar '07
A x i s T i t l e
Chart Title
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Mar '07
7,433.44
154.85
48.00
Mar '07
360
48.00413
7.50
Mar '07
9,420.24
264.915
35.55948
Axis Title
25.3822.23 20.30 21.94
48.00
0.00
10.00
20.00
30.00
40.00
50.00
60.00
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
A x i s T i t l e
Axis Title
Chart Title
14.18
16.1917.74
16.41
7.50
-
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
20.00
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
< - - I n v e n
t o r y
T u r n o v e r R a t i o
- - >
<-- Years -->
Inventory Turnover Ratio of Prestige Garden
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Mar '07
360.00
35.5594810.12388
Mar '07
9,420.24
10.12388
930.4968
Mar '07
6,969.50
#DIV/0!
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Mar '07
7,433.447,159.75
1.038226
Mar '07
7,433.44
-781.77
-9.508474
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Mar '07
5,534.32
7,159.75
0.77
orth to Total Asset
Mar '07
5,534.32
7,159.75
0.773
Mar '07
1,625.43
7,159.75
0.227023
Mar '07
0
101.18
0
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1,985.90
9,420.24
21.08%
7,433.44
762.59
9,420.24
87.00%
0.870045
9,420.24
0.01%
1,237.57
9,420.24
13%
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1,706.40
5.34
319.5506
#DIV/0!
#DIV/0!
#DIV/0!
#DIV/0!
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Mar '07
0.85
0.85
Mar '07
0.78
0.05
05 0.06
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Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Raw Materials 11,965.30 8,187.11 6,502.10 6,760.04 6,969.50
Power & Fuel Cost 86.61 70.35 60.89 69.20 79.34
Employee Cost 494.33 411.76 366.67 350.09 310.07
Other Manufacturing Expenses 61.77 57.54 57.08 53.72 74.53
COGS 12,608.01 8,726.76 6,986.74 7,233.05 7,433.44No. of Operating Days 360 360 360 360 360
Avg. Daily Operating Expenses 36.89 25.95 21.05 21.69 22.47
Avg. Inventories 496.75 392.53 344.23 329.66 -
Avg. Debtors 317.80 315.75 316.98 402.57 -
Gross Working Capital 5,358.19 3,111.75 2,401.45 1,780.67 3,848.25
Current Liabilities 6,550.07 4,466.78 2,602.35 2,019.23 4,517.25
Net Assets/Net Working Capital -1,191.88 -1,355.03 -200.90 -238.56 -669.00
Current Ratio 0.82 0.70 0.92 0.88 0.85
Quick Ratio 0.67 0.60 0.79 0.71 0.78
Net Working Capital Ratio -0.23 -0.32 -0.06 -0.08 -0.09Interval Measure 130.42 102.73 97.97 65.97 157.47
Cash Ratio 0.02 0.02 0.05 0.03 0.01
Inventory Turnover Ratio 25.38 22.23 20.30 21.94 -
Debtors Turnover Ratio 51.77 37.41 27.45 21.93 -
Net Assets Turnover Ratio -0.23 -0.32 -0.06 -0.08 -0.09
Days of Inventory Holding 14.18 16.19 17.74 16.41 -
Average Collection Period (in Days) 6.95 9.62 13.12 16.42 -
Investment in Debtors (in Rs. Crores) 114,408.00 113,668.20 114,112.80 144,925.20 -
Rate of Return on Debtors 2.92% 1.51% 0.58% 0.52% -
Debt Ratio 0.06 0.31 0.46 0.46 0.23
Debt - Equity Ratio 0.07 0.46 0.84 0.84 0.29
Capital Emplyed to Net worth Ratio 1.07 1.46 1.84 1.84 1.29
Equity Multiplier 1.60 2.21 2.58 2.59 1.60
Net Profit Margin Ratio 0.20 0.15 0.08 0.09 0.13
Operating Expense Ratio 0.81 0.79 0.87 0.88 0.86
Return on Investment (ROTA) 0.55 0.37 0.20 0.26 0.19
Return on Investment (RONA) 0.82 0.56 0.28 0.37 0.24
Return On Equity (ROE) 0.68 0.59 0.35 0.48 0.22
LEVERAGE RATIOS
PROFITABILITY RATIOS
ACTIVITY RATIOS/MANAGEMENT EFFICIENCY RATIOS
LIQUIDITY RATIOS
Ratio Analysis (in Rs. Crores)
Bajaj AutoDetails
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Leverage Analysis (in Rs. Crores)
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
EBIT 4,308.46 2,406.26 960.08 1,080.40 1,706.40
Sales 16,451.80 11,813.25 8,700.17 8,827.15 9,420.24
EPS (in Rs.) 115.51 118.67 45.35 52.24 122.31
Changes% change in EBIT 0.790521 1.506312 -0.11137 -0.36685 -
% change in sales 0.392657 0.357818 -0.01439 -0.06296 -
% change in EPS -0.02665 1.616706 -0.13178 -0.57291 -
Degree
Degree of Operating leverage 2.013264 4.209712 7.741737 5.826864 -
Degree of Finacial leverage -0.03372 1.073287 1.183343 1.56169 -
Degree of Combine Leverage -0.06788 4.518231 9.161132 9.099753 -
DetailsBajaj Auto
0
1
2
3
4
5
6
7
8
9
Mar '11 Mar '10 Mar '09 Mar '08
D e g r e e
Year
Y-O-Y DOL Comparison
Bajaj Auto
TVS
Hero MotoCorp
Kinetic
LML
-0.2
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
M
a
r
'
1
1
D e g r e e
Y-O-
Y
DFL
Com
pari
son
B
a
j
a
j
A
u
t
o
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Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Current Ratio 0.82 0.70 0.92 0.88 0.85
Quick Ratio 0.67 0.60 0.79 0.71 0.78
Net Working Capital Ratio -0.23 -0.32 -0.06 -0.08 -0.09
Interval Measure 130.42 102.73 97.97 65.97 157.47Cash Ratio 0.02 0.02 0.05 0.03 0.01
LIQUIDITY RATIOS-GRAPHICAL REPRESENTATION
LIQUIDITY RATIOS
DetailsBajaj Auto
0.00
0.20
0.40
0.60
0.80
1.00
1.20
R A T I O S
YEAR
Current Ratio Comparision
Bajaj Auto
TVS Motor
Hero MotoCorp
#REF!
#REF!
0.00
0.20
0.40
0.60
0.80
1.00
1.20
R A T I O S
Quic
k
Rati
o
Com
pari
sion
80.00
100.00
120.00
140.00
160.00
180.00
R A T I O S
Interval Measure
Comparision
Bajaj Auto
TVS Motor
Hero MotoCorp
#REF!
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0.00
20.00
40.00
60.00
YEAR
#REF!
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Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Inventory Turnover Ratio 25.38 22.23 20.30 21.94 -
Debtors Turnover Ratio 51.77 37.41 27.45 21.93 -
Net Assets Turnover Ratio -0.23 -0.32 -0.06 -0.08 -0.09
Days of Inventory Holding 14.18 16.19 17.74 16.41 -Average Collection Period (in
Days) 6.95 9.62 13.12 16.42 -
Rate of Return on Debtors 2.92% 1.51% 0.58% 0.52% -
ACTIVITY RATIOS/MANAGEMENT EFFICIENCY RATIOS-GRAPHICAL REPRESENTATION
ACTIVITY RATIOS/MANAGEMENT EFFICIENCY RATIOS
DetailsBajaj Auto
0.00
5.00
10.00
15.00
20.00
25.00
30.00
R A T I O S
YEAR
Inventory Turnover Ratio
Comparison
Bajaj Auto
TVS Motor
Hero MotoCorp
#REF!
#REF!
0.00
10.00
20.00
30.00
40.00
50.00
60.00
R A T I O S
Deb
tors
Turn
overRati
o
Com
pa…
B
a
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A
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14.00
16.00
18.00
20.00
Days of Inventory Holding
ComparisonAver
age
Coll
ecti
on
Peri
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0.00
2.00
4.00
6.00
8.00
10.00
12.00
D A Y S
YEAR
Bajaj Auto
TVS Motor
Hero MotoCorp
#REF!
#REF!
0.00
5.00
10.00
15.00
20.00
D A
Y S
od…
B
a
j
a
jA
u
t
o
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Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Debt Ratio 0.06 0.31 0.46 0.46 0.23
Debt - Equity Ratio 0.07 0.46 0.84 0.84 0.29
Capital Emplyed to Net worth Ratio 1.07 1.46 1.84 1.84 1.29
Equity Multiplier 1.60 2.21 2.58 2.59 1.60
LEVERAGE RATIOS
LEVERAGE RATIOS-GRAPHICAL REPRESENTATION
DetailsBajaj Auto
0.00
0.20
0.40
0.60
0.80
1.00
1.20
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
R A T I O S
YEAR
Debt Ratio Comparison
Bajaj Auto
TVS Motor
Hero MotoCorp
Kinetic
LML
0.00
0.20
0.40
0.60
0.80
1.00
1.20
M
a
r
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1
R A T I O S
Deb
t -
Equi
ty
Rati
o
Com
pa…
B
a
j
a
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0.00
0.50
1.00
1.50
2.00
2.50
3.00
Ma
R A T I O S
M
Co
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r '11
YEAR
Equity
ultiplier
mparison
BajajAuto
TVS
Motor
Hero
MotoC
orp
Kinetic
LML
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Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Net Profit Margin Ratio 0.20 0.15 0.08 0.09 0.13
Operating Expense Ratio 0.81 0.79 0.87 0.88 0.86
Return on Investment (ROTA) 0.55 0.37 0.20 0.26 0.19
Return on Investment (RONA) 0.82 0.56 0.28 0.37 0.24Return On Equity (ROE) 0.68 0.59 0.35 0.48 0.22
PROFITABILITY RATIOS
PROFITABILITY RATIOS-GRAPHICAL REPRESENTATION
DetailsBajaj Auto
0.00
0.20
0.40
0.60
0.80
1.00
1.20
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
R A T I O S
YEAR
Net Profit Margin
Ratio Comparison
Bajaj Auto
TVS
Hero MotoCorp
Kinetic
LML
0.00
0.20
0.40
0.60
0.80
1.00
1.20
M
a
r
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1
R A T I O S
Oper
ating
Expe
nce
Ratio
Com
par…
B
a
j
a
jA
u
t
o
0.80
1.00
1.20
RONA Comparison
0.80
1.00
1.20
ROE
Comparis
on
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0.00
0.20
0.40
0.60
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
R A T I O S
YEAR
Bajaj Auto
TVS
Hero MotoCorp
Kinetic
LML
0.00
0.20
0.40
0.60
M
a
r
'
1
1
R A T I O S
B
a
j
a
j
A
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to
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Capital Structure (in Rs. Crores)
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Instrument
Authorised Capital 300 150 150 150 150
Issued Capital 289.37 144.68 144.68 144.68 101.18
No of Shares (In Lakhs) 2,893.67 1,446.84 1,446.84 1,446.84 1,011.84Face Value 10.00 10.00 10.00 10.00 10.00
Paid Up Capital 289.37 144.68 144.68 144.68 101.18
Dividend Per Share 4.00 4.00 2.20 2.00 4.00
Shrare Prices 1459.8 1055.55 309.23 287.23 NA
Earning Per Share 115.51 118.67 45.35 52.24 122.31
Net Income Approach(Kd<Ko<Ke)
Net Operating Income 3,255.30 2,520.21 1,096.07 1,085.21 1,329.89
Total Debt 325.15 1338.58 1570.00 1334.34 1625.43
Interest on Debt 1.69 5.98 21.01 5.16 5.34
Equity Earnings 3253.61 2514.23 1075.06 1080.05 1324.55
Cost of Equity (Ke) 7.91% 11.24% 14.67% 18.19% -
Cost of Debt (Kd) 0.52% 0.45% 1.34% 0.39% 0.33%
Market Value Of Equity (E) 41118.18 22362.81 7330.13 5938.80 -
Market Value Of Debt (D) 325.15 1338.58 1570 1334.34 1625.43
Total Value Of Firm (V) 41443.33 23701.39 8900.13 7273.14 -
Cost of Capital (Ko) 7.85% 10.63% 12.32% 14.92% -
DetailsBajaj Auto
Equity Share
0.00%
5.00%
10.00%
15.00%
20.00%
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Capital Structure : Bajaj
Auto
Cost of Equity (Ke) Cost of Debt (Kd)
Cost of Capital (Ko)
0
0.5
1
1.5
Mar '11
Capital Structure :
TVS Motor
Cost of Equity (Ke)
Cost of Debt (Kd)
Cost of Capital (Ko)
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Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
CURRENT ASSETS
Inventories 547.28 446.21 338.84 349.61 309.70
Sundry Debtors 362.76 272.84 358.65 275.31 529.83
Cash and Bank Balance 155.45 100.20 135.68 54.74 62.16Loans and Advances 3,891.66 2,291.29 1,567.09 1,099.68 2,925.24
Fixed Deposits 401.04 1.21 1.19 1.33 21.32
Total Current Assets 5,358.19 3,111.75 2,401.45 1,780.67 3,848.25
CURRENT LIABILITIES
Current Liabilities 2,624.35 2,218.06 1,378.20 1,185.19 1,683.46
Provisions 3,925.72 2,248.72 1,224.15 834.04 2,833.79
Total Current Liabilities 6,550.07 4,466.78 2,602.35 2,019.23 4,517.25
Working Capital -1,191.88 -1,355.03 -200.90 -238.56 -669.00
Changes in Working Capital 163.15 -1,154.13 37.66 430.44 -
Increase/Decrease in Working
Capital (in Rs. Crores)
Increase (Application of Fund)
Decrease(Intersoursing of Fund)
Increase (Application of Fund)
Decrease(Intersoursing of Fund)
Increase (Application of Fund)
Decrease(Intersoursing of Fund)
Increase (Application of Fund)Decrease(Intersoursing of Fund) -
-
Mar'10 over Mar'09
Mar'09 over Mar'08
Mar'08 over Mar'07
Mar'11 over Mar'10
163.15
-
430.44
Statement Showing Changes in Working Capital / Fund Flow (in Rs. Crores)
DetailsBajaj Auto
37.66
-
-1,154.13
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Mar'11 Mar'10
Bajaj Auto -1,191.88 -1,355.03
Net Working Capital Comparision (in Rs. Crores)
-1,600.00
-1,400.00
-1,200.00
-1,000.00
-800.00
-600.00
-400.00
-200.00
0.00
200.00
Mar'11 Mar'10 M
N E T W O R
K I N G C A P I T A L
Y
Net Working Ca
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Mar'09 Mar'08 Mar'07
-200.90 -238.56 -669.00
r'09 Mar'08 Mar'07
EAR
pital Comparison
Bajaj Auto
#REF!
#REF!
#REF!
#REF!
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Working Capital Policy (in Rs. Crores)
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Fixed Assets (FA) 6,427.25 5,621.95 3,457.29 3,160.49 7,828.75
Current Assets (CA) -1,191.88 -1,355.03 -200.90 -238.56 -669.00
CA:FA -0.19 -0.24 -0.06 -0.08 -0.09
Year-wise WorkingCapital Policy
Moderate Moderate Moderate Moderate Moderate
Average CA:FA
Overall Working
Capital Policy (over
the period of 5 yrs)
Moderate Current Assets Policy
DetailsBajaj Auto
-0.13
-0.40
-0.20
0.00
0.20
0.40
0.60
0.80
1.00
1.20
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
C A : F A R A T I O
YEAR
Current Assets:Fixed Assets
Bajaj Auto
TVS Motor
Hero MotoCorp
Kinetic Eng.
LML
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Risk(Liquidity) - Return(Profitability) Trade Off (in Rs. Crores)
Mar '11 Mar '10 Mar '09 Mar '08 Mar '07
Net Sales 16,451.80 11,813.25 8,700.17 8,827.15 9,420.24
EBIT (in Rs. Crores) 4,308.46 2,406.26 960.08 1,080.40 1,706.40
Fixed Assets (FA) 6,427.25 5,621.95 3,457.29 3,160.49 7,828.75Current Assets (CA) -1,191.88 -1,355.03 -200.90 -238.56 -669.00
Total Assets 5,235.37 4,266.92 3,256.39 2,921.93 7,159.75
ROTA 82.30% 56.39% 29.48% 36.98% 23.83%
CA:FA -0.19 -0.24 -0.06 -0.08 -0.09
Average ROTA (over
the period of 5 yrs)
Average CA:FA (over
the period of 5 yrs)
Liquidity vs Profitability
Companies Liquidity Profitability
Bajaj Auto -0.13 45.80%
Bajaj Auto
Details
Moderate Current Assets Policy
Moderate Liquidity (solvency) but High Return on Total Assets
(profitability)
45.80%
-0.13
-0.20
-0.10
0.00
0.10
0.20
0.30
0.40
0.50
Bajaj Auto
L I Q U I D I T Y & P R O F I T A B I L I T Y
COMPANIES
Liquidity vs
Profitability
Liquidit
y
Profita
bility
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Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 % of Sales
Income
Sales Turnover 17,386.51 12,420.95 9,310.24 9,856.66 10,741.91
Excise Duty 934.71 607.70 610.07 1,029.51 1,321.67
Net Sales 16,451.80 11,813.25 8,700.17 8,827.15 9,420.24 0.168282641
Other Income 1,176.00 22.50 -6.20 170.27 567.16
% of Sales 7.15 0.19 -0.07 1.93 6.02 7.785234944
Stock Adjustments 82.79 47.60 -24.49 67.85 -0.90
% of Sales 0.50 0.40 -0.28 0.77 -0.01 0.28
Total Income 17,710.59 11,883.35 8,669.48 9,065.27 9,986.50
Expenditure
Raw Materials 11,965.30 8,187.11 6,502.10 6,760.04 6,969.50
% of Sales 72.73 69.30 74.74 76.58 73.98 73.47
Power & Fuel Cost 86.61 70.35 60.89 69.20 79.34
% of Sales 0.53 0.60 0.70 0.78 0.84 0.69
Employee Cost 494.33 411.76 366.67 350.09 310.07
% of Sales 3.00 3.49 4.21 3.97 3.29 3.59
Other Manufacturing Expenses 61.77 57.54 57.08 53.72 74.53
% of Sales 0.38 0.49 0.66 0.61 0.79 0.58
Selling and Admin Expenses 450.18 407.61 381.73 390.15 457.17
% of Sales 2.74 3.45 4.39 4.42 4.85 3.97
Miscellaneous Expenses 237.76 221.94 225.56 209.63 230.89
% of Sales 1.45 1.88 2.59 2.37 2.45 2.15
Preoperative Exp Capitalised -16.66 -15.67 -14.42 -23.04 -32.05
% of Sales -0.10 -0.13 -0.17 -0.26 -0.34 -0.20
Total Expenses 13,279.29 9,340.64 7,579.61 7,809.79 8,089.45
Operating Profit 3,255.30 2,520.21 1,096.07 1,085.21 1,329.89
PBDIT 4,431.30 2,542.71 1,089.87 1,255.48 1,897.05
Interest 1.69 5.98 21.01 5.16 5.34
PBDT 4,429.61 2,536.73 1,068.86 1,250.32 1,891.71
Depreciation 122.84 136.45 129.79 173.96 190.26
% of Change -0.10 0.05 -0.25 -0.09 -0.10
Other Written Off 0.00 0.00 0.00 1.12 0.39
Profit Before Tax 4,306.77 2,400.28 939.07 1,075.24 1,701.06
Extra-ordinary items 46.77 26.87 18.72 59.32 26.60
PBT (Post Extra-ord Items) 4,353.54 2,427.15 957.79 1,134.56 1,727.66
Tax 1,011.02 710.12 301.61 378.78 490.09
% of PBT 0.23 0.29 0.31 0.33 0.28 0.29
Reported Net Profit 3,342.52 1,717.03 656.18 755.78 1,237.57
DetailsBajaj Auto
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Forecasted Value
19,220.35
1496.349588
53.19323251
20,769.90
14120.65061
132.5439397
690.4872674
112.1840266
762.9467958
412.9436428
-38.47510301
16,193.28
3,027.07
4,576.61
5.34
4,571.27
111.0364059
0
4,571.27
0
4,571.27
1332.283199
3 238 99