Bajaj Auto Limited (BAJAJ.AUTO) AI Stock Analysis

• Market Cap: ₹2.29T
• Dividend Yield: 2.56%
• Average Volume (3M): 8.60K
• Price to Earnings (P/E): 30.2
• Beta (1Y): 1.08
• Revenue Growth: 12.27%
• EPS Growth: -4.25%
• Country: IN
• Employees: 6,192
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Auto - Manufacturers
• EPS (TTM): 75.10
• Shares Outstanding: 279,257,600
• 10 Day Avg. Volume: 7,002
• 30 Day Avg. Volume: 8,602
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹8,877.21
• Price Target Upside: 8.13% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 15

• Rating: 66 Neutral
• Price Target: ₹8,851.00 ▲(7.82% Upside)

Bajaj Auto Limited has a solid financial foundation with strong revenue growth and operational efficiency. However, challenges in cash flow and profitability, coupled with a high valuation and lack of strong technical momentum, weigh on the overall score.

Bajaj Auto Limited Business Overview & Revenue Model

Company Description

Bajaj Auto Limited, a prominent player in the automotive industry, is headquartered in Pune, India. It is part of the Bajaj Group and is renowned for manufacturing a diverse range of motor vehicles, including motorcycles, scooters, and three-wheelers. The company has established itself as a leader in the two-wheeler and three-wheeler segments not only in India but also in various international markets. Bajaj Auto is recognized for its innovation, quality, and performance-driven products.

How the Company Makes Money

Bajaj Auto Limited generates revenue primarily through the sale of its two-wheeler and three-wheeler vehicles. The company has a broad product portfolio that caters to various segments of the market, from entry-level vehicles to premium motorcycles. Key revenue streams include domestic sales, where Bajaj Auto holds a significant market share, and export sales to over 70 countries, making it one of the leading exporters of two-wheelers and three-wheelers globally. Additionally, the company benefits from strategic partnerships and collaborations with other automotive companies, which enhance its product offerings and market reach. Bajaj Auto's strong brand reputation and extensive distribution network further bolster its revenue generation capabilities.

Bajaj Auto Limited Financial Statement Overview

Summary

Bajaj Auto Limited shows strong revenue growth and operational efficiency with an EBIT margin of 19.71%. However, the net profit margin has decreased to 14.36%, and cash flow generation is challenging, with negative operating cash flow in 2025. The balance sheet remains robust but increasing leverage needs careful management.

Income Statement

Bajaj Auto Limited has demonstrated strong revenue growth with a 10.46% increase from 2024 to 2025. The gross profit margin is solid at 26.45%, although it has slightly decreased from previous years. The net profit margin has also decreased to 14.36%, indicating some pressure on profitability. Despite this, the EBIT margin remains high at 19.71%, showcasing operational efficiency. Overall, the income statement reflects robust growth and efficiency but highlights a need for improvement in net profitability.

Balance Sheet

The balance sheet of Bajaj Auto Limited shows a strong equity base with an equity ratio of 64.92%, indicating financial stability. However, the introduction of debt in 2025 has increased the debt-to-equity ratio to 0.26, which although manageable, indicates increasing financial leverage. The return on equity stands at 20.82%, reflecting efficient use of equity to generate profits. Overall, the balance sheet remains healthy but requires careful management of debt levels going forward.

Cash Flow

The cash flow statement reveals challenges in cash generation, with operating cash flow turning negative in 2025. The free cash flow has also declined significantly, with a negative free cash flow growth rate of -133.89%. The operating cash flow to net income ratio has deteriorated, indicating inefficiencies in cash conversion. While there have been strong financing activities, the overall cash flow position requires significant improvement to ensure sustainable liquidity.

Breakdown	Mar 2025	Mar 2023	Mar 2024	Mar 2022	Mar 2020
Income Statement
Total Revenue	509.95B	353.92B	461.62B	322.35B	291.71B
Gross Profit	134.93B	92.98B	141.24B	72.44B	76.87B
EBITDA	119.42B	75.97B	101.96B	73.41B	66.15B
Net Income	73.25B	60.60B	77.08B	61.66B	52.12B
Balance Sheet
Total Assets	541.99B	351.36B	393.44B	351.11B	265.10B
Cash, Cash Equivalents and Short-Term Investments	87.50B	57.45B	62.99B	59.03B	30.65B
Total Debt	92.37B	0.00	17.86B	0.00	0.00
Total Liabilities	189.82B	57.75B	103.81B	52.52B	48.48B
Stockholders Equity	351.89B	293.62B	289.62B	298.60B	216.62B
Cash Flow
Free Cash Flow	-19.78B	41.67B	58.35B	36.46B	35.54B
Operating Cash Flow	-11.64B	52.77B	65.58B	41.97B	38.50B
Investing Cash Flow	-13.64B	12.00B	-3.18B	-808.60M	15.56B
Financing Cash Flow	42.96B	-71.81B	-61.93B	-40.56B	-62.47B

Bajaj Auto Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8209.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BAJAJ.AUTO, the sentiment is Neutral. The current price of 8209.4 is above the 20-day moving average (MA) of 8205.20, below the 50-day MA of 8287.90, and below the 200-day MA of 8359.45, indicating a neutral trend. The MACD of -16.18 indicates Negative momentum. The RSI at 49.10 is Neutral, neither overbought nor oversold. The STOCH value of 76.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:BAJAJ.AUTO.

Bajaj Auto Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HEROMOTOCO	79 Outperform	₹941.54B	18.68		3.51%	3.30%	23.39%
HYUNDAI	70 Outperform	₹1.82T	32.94		0.94%	-2.62%	-11.26%
EICHERMOT	69 Neutral	₹1.58T	32.66		1.21%	15.21%	15.48%
TATAMOTORS	69 Neutral	₹2.45T	11.54		0.90%	-1.08%	-34.23%
BAJAJ.AUTO	66 Neutral	₹2.29T	30.19		2.56%	12.27%	-4.25%
Sector *	61 Neutral	$17.23B	11.51	-5.97%	3.09%	1.47%	-15.79%
TVSMOTOR	59 Neutral	₹1.44T	60.16		0.33%	14.06%	39.28%