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4/22/12

Auto Sector
Facts

Second Largest two wheeler

manufacturer in the world
Largest tractor and three wheeler
manufacturers in the world
Fourth largest Commercial vehicle
market in the world
Eleventh largest passenger car
market in the world

Trends

Growth Potential

Growth of exports of 29.64 % FY

2010-2011.
Output of commercial vehicles has
grown 2.8 times compared to the
2.2 times increase in passenger
cars
For every passenger car turned
out, there are almost 7 twowheelers produced

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Can become Worlds third largest

automobile market in 2030.

By 2016, Automotive sector can

DOUBLE its percentage contribution
to GDP from current levels of 5%
(US$50 billion) to 10% ($180
billion).

Domestic
sales
trend
Export
Trend

10
10
9
9
8
8
7
7
6
6
5
5
4
4
3
3
2
2
1
1
0
0

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PORTER 5 FORCES MODEL

New
Entrants

Supplier
Power

Industry
Rivalry

Substitute
s

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Buyer
Power


12

Net sales

Y-o-Y sales growth

12
10

10

0
0

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EBIDTA margins
12
EBITDA

10

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PAT
12

PAT margin

12
10

10

4
4

2
2

0
0

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SWOT Analysis

Key Financials
Particulars
Sales
EBIDTA
PAT

Bajaj Auto FY10 IndustryFY10 Bajaj Auto FY11

12,455.80
35,724.64
17,417.70
2,541.00
5,792.32
4,568.80
1,697.10
3,874.32
3,874.32
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Ratio Analysis

FY2008 FY2009 FY2010FY2011 FY2008

Leverage Ratios
Debt-Equity ratio
Debt-Asset ratio

Owners Funds as a % of
total sources
Profitability Ratios
ROE
ROA

ROCE

Bajaj Auto ltd

TVS motors

FY200
FY2009 FY2010 FY2011 8
FY2009 FY2010FY2011

0.83
0.67

0.88
0.72

0.50
0.68

0.07
0.48

0.04
0.41

0.02
0.38

0.02
0.59

0.50
0.73

1.07
0.74

1.75
0.83

1.93
0.82

1.54
0.16

0.55

0.53

0.67

0.93

0.96

0.98

0.98

0.66

0.48

0.36

0.34

0.40

46%
30%
59%
72%
12.35% 6.22% 20.77% 28.90%

32%
34%
64%
65%
-4%
-10%
5%
19%
23.07% 24.75% 29.01% 18.25% -6.05% -3.56% -1.17% 0.81%

20.09% 10.32% 42.38% 50.81%

36.00% 37.29% 66.92% 42.09% -7.52% -4.34% -1.55%

Turnover Ratio

Fixed Asset turnover ratio

6.68
5.93
7.50
10.42
Working capital turnover
ratio
-40.15 -45.41 -16.38 -13.85
Inventory turnover ratio
18.85
18.03 20.13
23.49
Total assets turnover ratio
1.79
1.61
1.65
1.84
Receivable turnover ratio

Hero Moto Corp

34.26

0.89
0.69

31.65

6.51

1.19

2.89

3.66

0.94

-10.60
25.46
1.46

-12.78
27.79
2.21

-10.55
28.71
2.16

-5.84
29.96
1.99

-1.47
31.42
0.50

16.41
20.72
1.61

17.15
16.17
1.80

28.60
10.79
0.78

32.67

55.07

122.00

161.06

39.45

27.01

21.69

25.11

Book Value per share

EV

250.69 259.96 322.44 445.48

187.48 228.26 211.45 185.97 54.41
49.70 48.86 60.86
23954.0 24976.6 26777. 46820.2
44314.0 44301.5 45726.7 2233.3 2493.0 2511.8 3895.0
8
0 99
5 44367.55
4
8
1
3
0
5
0

Valuation Ratios

0.73
0.59

9.27

0.71
0.60

52.25

7.56

Liquidity ratio
Current ratio
Quick ratio

0.94
0.79

41.76

6.63

5.94%

0.51
0.34

0.49
0.33

0.60
0.51

0.24
0.16

1.29
0.56

1.31
0.88

1.19
0.62

Price/ Book value

6.471

6.241

5.031

3.642

11.56

9.49

10.25

11.65

1.21

1.23

0.99

Price/ Earnig

30.29

43.95

14.74

13.63

44.72

33.77

19.39

22.45 -50.57 -22.60

42.63

22.34

EV/EBIDTA

30.97

51.73

13.27

16.98

33.36

26.31

16.64

19.21 -88.87

53.30

23.72

15.77

2.77

2.96

2.15

2.92

4.29

3.60

2.81

20.74

22.00

40.00

EV/Sales
Dividend per Share

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40.00
17.00

1.11

1.42
0.87

2.38

0.68

0.67

0.55

0.61

20.00 109.99 104.99

0.70

0.70

1.31

1.15