Document 6570016

Transcription

Document 6570016

2QFY2015 Result Update | Automobile
October 17, 2014
Bajaj Auto
ACCUMULATE
Performance Highlights
CMP
Target Price
Y/E March (` cr)
Net Sales
EBITDA
EBITDA Margin (%)
Adj. EBITDA Margin (%)
Net profit
Adj. net profit
2QFY15
5,963
1,127
18.9
20.0
591
881
2QFY14
5,175
1,132
21.9
22.6
837
864
% chg (yoy)
15.2
(0.5)
(300)bp
(260)bp
(29.4)
1.9
1QFY15
5,252
925
17.6
18.9
740
786
% chg (qoq)
13.5
21.8
130bp
110bp
(20.1)
12.0
Source: Company, Angel Research
`2,358
`2,583
Investment Period
12 Months
Stock Info
Sector
Automobile
Market Cap (` cr)
68,223
Net Debt (` cr)
(8,900)
Beta
Bajaj Auto (BJAUT)’s adjusted results for 2QFY2015 were broadly in line with our
estimates. The top-line for the quarter grew 15.2% yoy to `5,963cr, slightly higher
than our estimate of `5,721cr. Volumes grew 10% yoy led by strong motorcycle
exports (29% growth) and three wheelers (40% growth). Realisation, at
`56,491/vehicle, grew 5% yoy (better than our estimate of `54,202/vehicle),
boosted mainly by higher export realization and price hikes. The company
realized INR61.5 / USD in 2QFY2015 as against INR60.9 / USD in the
corresponding quarter last year. On the operating front, the adjusted margin at
20% was broadly in line with our estimate of 19.6%. However, the exceptional
items charge of `340.2cr on account of NCCD and `67.4cr of MTM loss on forex
hedges, impacted profitability. The reported net profit at `591cr was significantly
lower than our estimate of `860cr.
52 Week High / Low
Going ahead, the Management expects growth momentum to continue in the
domestic motorcycle industry (expects 10% volume growth in 2HFY2015). The
company also expects market share gains on the back of new Discover 150 and
new launches planned ahead. Additionally, continued strong growth in Africa and
Latin American markets is likely to boost export sales (volume growth of 20%
expected in FY2015). Further, new permits in the domestic market such as Delhi,
Hyderabad and Maharashtra and strong traction in exports are likely to lift three
wheeler volumes. We marginally increase our EBITDA margin and earnings
expectations for FY2015/16 due to higher export realization and strong export
outlook. Nevertheless, we retain our Accumulate rating on the stock.
0.6
2,194/1,684
Avg. Daily Volume
32,179
Face Value (`)
10
BSE Sensex
26,109
Nifty
7,780
Reuters Code
BAJA.BO
Bloomberg Code
BJAUT@IN
Shareholding Pattern (%)
Promoters
50.0
MF / Banks / Indian Fls
15.3
FII / NRIs / OCBs
19.0
Indian Public / Others
15.7
Abs. (%)
Sensex
Bajaj Auto
3m
1yr
3yr
12.7
8.9
42.8
2.1
27.9
53.4
Outlook and valuation: We maintain our positive stance on the company, given
its diversified business model, strong focus on profitable growth, widening reach
in export markets and strategic alliances with global majors. At the CMP, the stock
is trading at 14.6x FY2016E earnings. We retain our Accumulate rating on the
stock with a target price of `2,583, valuing the stock at 16x FY2016E earnings.
Key financials (Standalone)
Y/E March (` cr)
Net Sales
% chg
Net Profit
% chg
EBITDA (%)
EPS (`)
P/E (x)
P/BV (x)
RoE (%)
RoCE (%)
EV/Sales (x)
EV/EBITDA (x)
FY2013
19,997
2.4
3,044
(3.0)
18.2
105.2
18.6
7.2
43.7
46.9
3.1
17.2
FY2014
20,150
0.8
3,243
6.6
20.4
112.1
21.0
7.3
34.8
46.8
3.0
14.7
Source: Company, Angel Research; Note: CMP as of Oct 17, 2014
Please refer to important disclosures at the end of this report
FY2015E
23,766
17.9
3,798
17.1
20.5
131.3
18.0
6.0
31.3
45.3
2.4
11.9
FY2016E
28,938
19.5
4,669
22.9
20.7
161.4
14.6
4.9
33.8
45.8
2.0
9.6
Bharat Gianani
022-3935 7800 Ext: 6817
bharat.gianani@angelbroking.com
1
Bajaj Auto | 2QFY2015 Result Update
Exhibit 1: Quarterly financial performance (Standalone)
Y/E March (` cr)
2QFY15
2QFY14
% chg (yoy)
1QFY15
% chg (qoq)
YTDFY15
YTDFY14
% chg (yoy)
Total operating income
5,963
5,175
15.2
5,252
13.5
11,216
10,086
11.2
Raw material consumption
4,110
3,469
18.5
3,680
11.7
7,790
6,875
13.3
% of total operating income
68.9
67.0
190bp
70.1
(120)bp
69.5
68.2
130bp
Employee expense
210
183
14.6
215
(2.0)
425
367
15.7
Other expenditure
Total expenditure
EBIDTA
3.5
3.5
-
4.1
(60)bp
3.8
3.6
20bp
516
391
32.0
432
19.3
977
837
16.8
8.7
7.6
110bp
8.2
50bp
8.7
8.3
40bp
4,836
4,043
19.6
4,327
11.8
9,192
8,079
13.8
81.1
78.1
82.0
80.1
82.4
1,127
1,132
(0.5)
925
21.8
2,023
2,007
0.8
EBITDA margin (%)
18.9
21.9
(300)bp
17.6
130bp
18.0
19.9
(190)bp
Adj. EBITDA margin (%)
20.0
22.6
(260)bp
18.9
110bp
19.2
21.2
(200)bp
69
44
54.4
69
(0.8)
138
89
54.8
1,172
1,212
(3.3)
1,075
9.0
2,247
2,250
(0.1)
114
124
(8.5)
219
(48.2)
333
300
11.0
0
0
25.0
0
(54.5)
0
0
23.1
1,172
1,212
(3.3)
1,075
9.0
2,247
2,250
(0.1)
(340)
-
-
-
-
(340)
-
-
831
1,212
(31.4)
1,075
(22.7)
1,907
2,250
(15.3)
(35.8)
335
(28.2)
(14.7)
Depreciation
EBIT
Other Income
Net Interest exp (inc)
Profit before tax (PBT)
Extraordinary income/(expense)
PBT (after extraordinary items)
Taxes
241
375
% of PBT
20.5
30.9
Profit after tax (PAT)
591
837
(29.4)
740
Adjusted PAT
881
864
1.9
786
Equity capital
289.4
289.4
Reported EPS (`)
20.4
28.9
(29.4)
25.6
Adjusted EPS (`)
30.5
29.9
1.9
27.2
576
675
25.6
30.0
(20.1)
1,331
1,575
(15.5)
12.0
1,667
1,670
(0.2)
289.4
289.4
(20.1)
46.0
54.4
(15.5)
12.0
57.6
57.8
(0.2)
31.2
289.4
Exhibit 2: 2QFY2015 – Actual vs Angel estimates
Y/E March (` cr)
Actual
Estimates
Variation (%)
Net Sales
5,963
5,721
4.2
EBITDA
1,127
1,123
0.3
EBITDA margin (%)
18.9
19.6
(70)bp
Adj. EBITDA margin (%)
20.0
19.6
40bp
Reported PAT
591
860
(31.3)
Adjusted PAT
881
860
2.5
October 17, 2014
2
Exhibit 3: Quarterly volume performance
Y/E March
2QFY15
2QFY14
% chg (yoy)
1QFY15
% chg (qoq)
YTDFY15
YTDFY14
% chg (yoy)
Domestic Motorcycles
461,651
506,472
(8.8)
490,841
(5.9)
952,492
1,078,127
(11.7)
Motorcycle exports
437,502
342,818
27.6
384,017
13.9
821,519
631,314
30.1
Total motorcycles
899,153
849,290
5.9
874,858
2.8
1,774,011
1,709,441
3.8
74,838
53,828
39.0
55,622
34.5
130,460
98,885
31.9
Domestic three-wheeler
Three-wheeler exports
81,591
58,212
40.2
57,950
40.8
139,541
132,279
5.5
156,429
112,040
39.6
113,572
37.7
270,001
231,164
16.8
Total Domestic
536,489
560,300
(4.2)
546,463
(1.8)
1,082,952
1,177,012
(8.0)
Total Exports
519,093
401,030
29.4
441,967
17.5
961,060
763,593
25.9
1,055,582
961,330
9.8
988,430
6.8
2,044,012
1,940,605
5.3
Total three-wheelers
Total volumes

Realisation/vehicle grew 5% yoy to `56,491/vehicle (was 4% better than our
estimate of `54,202/vehicle). Better export realization (rate of INR61.5 / USD
as compared to INR60.9 / USD in 2QFY2014), better product mix (higher
share of premium motorcycles) and price hikes boosted the realisation.

Contribution/vehicle at `17,555 improved 10% sequentially and was 7%
ahead of our estimates.

Export volumes continued to post robust double-digit growth on strong
performance in key markets of Africa and Latin America. Export revenues grew
25% on back of robust 29% growth in volumes. Share of exports in revenues
has increased from 42% in 2HFY2014 to 45% in 1HFY2015.

Domestic volumes continue to remain in the negative territory due to
underperformance in the executive motorcycle segment. However the pace
of decline has moderated given the encouraging response to the new
Discover 150.
Exhibit 4: Realisation & contribution/vehicle
57,000
56,000
55,000
54,000
53,000
52,000
51,000
50,000
49,000
48,000
47,000
46,000
Exhibit 5: Domestic and export volume growth
40
18,000
17,500
30
17,000
20
16,500
10
15,500
15,000
14,500
14,000
1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15
Realisation/vehicle (LHS)
October 17, 2014
Contribution/vehicle (RHS)
(%)
16,000
0
1QFY14
2QFY14
3QFY14
4QFY14
1QFY15
2QFY15
(10)
(20)
(30)
Domestic growth (yoy)
Export growth (yoy)
3
Exhibit 6: Proportionate revenue mix
Exhibit 7: Domestic market share trend
50
100.0
45
90.0
38.2
41.1
41.4
42.1
42.9
70.0
40
45.9
35
30
50.0
25
(%)
60.0
20
40.0
30.0
61.8
58.9
58.6
57.9
57.1
20.0
15
54.1
10
5
10.0
0
0.0
1QFY14
2QFY14
3QFY14
Domestic Revenue
4QFY14
1QFY15
Export Revenue
1QFY14
2QFY15

Net Profit was impacted by one time NCCD charge of `340.3cr and MTM
forex loss of `67.4cr.
Exhibit 9: PAT Margin trend
25
1,000
20
900
18
800
16
700
(%)
15
14
600
600
12
500
10
10
400
400
8
300
5
6
200
200
4
100
2
-
0
4QFY14
1QFY15 2QFY15
Margin (%)
(` cr)
800
(` cr)
1,000
20
October 17, 2014
2QFY15
EBIDTA margins at 18.9% declined 300bp yoy due to increased competitive
intensity in the domestic market and MTM loss on forex hedges.
1,200
4QFY14
1QFY15
Three wheelers

Exhibit 8: EBIDTA Margin trend
2QFY14 3QFY14
EBIDTA (` Cr)
3QFY14
Motorcycles
Source: Company, SIAM, Angel Research
1QFY14
2QFY14
0
(%)
80.0
0
1QFY14
2QFY14
3QFY14
4QFY14
Reported PAT (` Cr) LHS
1QFY15
2QFY15
Margin (%) RHS
4
Conference call – Key highlights
October 17, 2014

Bajaj Auto has received encouraging response for the recently launched
“Discover 150”. The feedback from the customers is positive with BAL selling
about 25,000 units in the month of September 2014.

To strengthen domestic portfolio and regain market share, the company aims
to launch two new products over the next six months: one in the entry level
segment (Platina) and one in the commuter space (Discover).

BJAUT expects the festive demand to remain strong (expects 10-12% growth).
Further, the demand improvement is likely to sustain in 2HFY2015 beyond the
festive season given the improved economic outlook and consumer sentiment.

BJAUT expects robust growth in exports to continue. It expects 18-20% volume
growth for FY2015. It has ramped up exports to Ghana and Angola (Africa),
Iran, Mexico (Latin America), and Philippines; enabling it to boost volumes.

BJAUT sees healthy growth in three wheelers to continue over the next six to
eight months. New permits in Delhi, Hyderabad and Maharashtra and strong
traction in exports are likely to boost volumes. Further, new products launches
in the diesel space (led to BJAUT’s market share improving from 25% in
FY2014 to 32% in 2QFY2015) would also enhance volumes.

The quadricycle “RE60” launch has been delayed due to government
clearances and it will now be launched in January 2015. Further, BJAUT has
stated that it would launch the product first in the domestic market.

BJAUT has stated that it is likely to realize a rate of `61.9 / USD for
3QFY2015 and `62.5 / USD for 4QFY2015 as compared to realisation of
`60.7 /USD in 1HFY2015 based on the hedges taken.

BJAUT expects commodity prices to remain stable but expects marginal
increase in costs due to hike in conversion costs.
5
Investment arguments

Exports to be the key growth driver: BJAUT registered a strong exports CAGR
of ~20% during FY2009-13, aided by a ~20% CAGR in two-wheeler exports
and an ~16% CAGR in three-wheeler exports. In FY2014, exports growth
remained muted due to import duty hike in Sri Lanka and disruptions in Egypt.
Export volumes rebounded sharply in 2HFY2015, registering growth of 26%.
We expect volumes to grow at ~17% CAGR over the next two years. BJAUT
has been tapping new markets in Africa and Latin America which is boosting
volumes. It has ramped up its presence in new markets such as Ghana,
Angola (Africa), Argentina (Latin America), Philippines and in other markets
such as Iran. Further, BJAUT has affected price corrections in strong markets
such as Nigeria which has boosted its volumes.

Demand recovery, new launches to boost domestic growth: BJAUT’s domestic
motorcycle performance has been severely impacted during FY2014 due to
slowdown in demand and increasing competition, leading to poor volumes
(down ~15% yoy) and erosion in market share (down ~400bp to 18.5%). In
1HFY2015, BJAUT’s market share has further dipped to 16.5%. We attribute
this to the disappointing performance of the flagship brand, Discover whose
monthly run rate has dropped by 35-40% from its peak. However given the
encouraging response to Discover 150, we expect gradual improvement in its
market share. Further, given the improved consumer sentiments, the demand
for premium motorcycles (where BJAUT is the market leader) is likely to
accelerate over the next four to six quarters. We expect BJAUT to post flat
volumes in FY2015 (as against 11% decline in 1HFY2015) and expect 13%
volume growth in FY2016.

Three-wheelers registering healthy growth: BJAUT has a strong presence in the
three-wheeler market, with an overall market share (including exports) of
~57%. The company tops the passenger auto-rickshaw segment (~65%
market share), which accounts for ~85% of the three-wheeler market. The
three-wheeler segment fetches higher margins than the company’s
two-wheeler business. Although competition in the domestic three-wheeler
space is intense, strong export volume growth has helped BJAUT to post an
~15% volume CAGR over FY2009-13. We expect the company to sustain its
growth momentum and leadership position led by its revamped product
portfolio and opening of new permits in important states like Maharashtra,
Delhi and Hyderabad.
Outlook and valuation
The Management expects the growth momentum to continue in domestic
motorcycle industry (expects 10% volume growth in 2HFY2015). The company also
expects market share gains on the back of new Discover 150 and new launches
planned ahead. Additionally, continued strong growth in Africa and Latin American
markets is likely to boost export sales (volume growth of 20% expected in FY2015).
Further, new permits in the domestic market such as Delhi, Hyderabad and
Maharashtra and strong traction in exports are likely to lift three wheeler volumes.
We maintain our positive stance on the company, given its diversified business
model, strong focus on profitable growth, widening reach in export markets and
October 17, 2014
6
strategic alliances with global majors. At the CMP, the stock is trading at 14.6x
FY2016E earnings. We retain our Accumulate rating on the stock with a target
price of `2,583 valuig at 16x FY2016E earnings
Exhibit 10: Key assumptions - Volumes
Y/E March (` cr)
Domestic Motorcycles
Motorcycle exports
Total Motorcycles
FY2011
FY2012
FY2013
FY2014
FY2015E
FY2016E
2,414,603
2,566,757
2,463,863
2,099,230
2,058,994
2,325,000
972,437
1,267,648
1,293,231
1,323,173
1,629,017
1,860,000
3,387,040
3,834,405
3,757,094
3,422,403
3,688,011
4,185,000
Domestic Three wheeler
205,603
202,979
226,131
186,912
228,033
241,715
Three wheeler exports
231,281
312,176
253,926
260,762
301,968
318,285
Total Three wheeler
436,884
515,155
480,057
447,674
530,001
560,000
15,000
55,000
Quadricycle
Total volumes
% chg
3,823,924
4,349,560
4,237,151
3,870,077
4,233,012
4,800,000
34.0
13.7
(2.6)
(8.7)
9.4
13.4
Company background
Bajaj Auto (BJAUT) is the second largest 2W manufacturer in the country
(~18% market share) and a market leader in the 3W segment (~55% 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 ~42% of revenue in FY2014. The two dominant brands, Discover
and Pulsar account for ~65% of the company’s motorcycle volumes.
October 17, 2014
7
Profit and loss statement (Standalone)
Y/E March (` cr)
FY2011 FY2012 FY2013
FY2014 FY2015E FY2016E
Total operating income
16,398
20,150
% chg
19,997
23,766
28,398
37.6
19.1
2.4
0.8
17.9
19.5
Total expenditure
13,227
15,809
16,362
16,044
18,900
22,520
Net raw material costs
11,798
14,103
14,407
13,877
16,377
19,623
Other mfg costs
253
327
382
434
485
535
Employee expenses
477
540
639
727
843
960
Other
700
839
934
1,007
1,194
1,402
3,171
3,720
3,635
4,106
4,866
5,878
% chg
22.5
17.3
(2.3)
12.9
18.5
20.8
(% of total op. income)
19.3
19.0
18.2
20.4
20.5
20.7
Depreciation & amortization
123
146
164
180
277
295
EBITDA
EBIT
3,048
3,574
3,471
4,633
5,422
6,623
% chg
24.3
17.3
(2.9)
8.6
17.0
22.2
18.6
18.3
17.4
23.0
22.8
23.3
Interest and other charges
2
22
1
0
1
1
Other income
577
608
795
706
833
1,040
Recurring PBT
3,623
4,160
4,266
4,632
5,422
6,622
% chg
41.0
14.8
2.5
8.6
17.0
22.1
Extraordinary income/(exp.)
725
(134)
-
0
(340.3)
0
PBT (reported)
4,348
4,026
4,266
4,632
5,081
6,622
Tax
1,008
1,022
1,223
1,362
1,528
1,954
(% of PBT)
October 17, 2014
19,529
23.2
25.4
28.7
29.4
28.2
29.5
PAT (reported)
3,340
3,004
3,044
3,243
3,553
4,669
ADJ. PAT
2,615
3,138
3,044
3,243
3,798
4,669
% chg
40.3
20.0
(3.0)
6.6
9.6
31.4
15.9
16.1
15.2
16.1
15.0
16.4
Basic EPS (`)
90.4
108.4
105.2
112.1
131.3
161.4
Adj. EPS (`)
90.4
108.4
105.2
112.1
131.3
161.4
% chg
40.3
20.0
(3.0)
6.6
17.1
22.9
8
Balance sheet statement (Standalone)
Y/E March (` cr)
FY2011
FY2012
FY2013
FY2014
FY2015E
FY2016E
SOURCES OF FUNDS
Equity share capital
289
289
289
289
289
289
Reserves & surplus
4,621
5,752
7,613
9,319
11,339
13,823
Shareholders’ funds
4,910
6,041
7,902
9,608
11,628
14,112
Total loans
Deferred tax liability
292
97
71
145
200
200
30
48
115
143
143
143
Other long term liabilities
194
157
122
-
-
-
Long term provisions
125
112
135
121
120
120
5,550
6,456
8,345
10,017
12,092
14,575
Gross block
3,395
3,396
3,829
4,077
4,477
4,877
Less: Acc. depreciation
1,912
1,914
2,024
2,071
2,348
2,642
Net Block
1,483
1,482
1,804
2,006
2,129
2,235
70
42
294
144
150
150
Total Liabilities
APPLICATION OF FUNDS
Capital work-in-progress
Investments
4,722
4,883
6,430
8,550
9,500
11,000
Long term loans and adv.
227
601
462
720
970
1,240
Other noncurrent assets
402
1
1
-
-
-
2,344
4,076
3,487
3,327
4,019
5,131
229
1,654
559
495
2,207
2,305
Current assets
Cash
Loans & advances
992
1,025
1,312
978
1,074
1,193
Other
1,123
1,397
1,616
1,853
738
1,633
Current liabilities
3,698
4,628
4,134
4,730
4,677
5,181
Net current assets
(1,353)
(553)
(647)
(1,403)
(658)
(50)
-
-
-
5,550
6,456
8,345
10,017
12,092
14,575
Misc. exp. not written off
Total Assets
Note: Cash and bank balance includes term deposits with banks
October 17, 2014
9
Cash flow statement (Standalone)
Y/E March (` cr)
Profit before tax
Depreciation
FY2011 FY2012 FY2013
4,348
4,026
4,266
FY2014
FY2015E
FY2016E
4,632
5,422
6,622
123
146
164
47
277
295
Change in working capital
(822)
332
(521)
422
465
(1,051)
Direct taxes paid
(974)
(1,148)
(1,239)
(1,389)
(1,528)
(1,954)
Less: Others
(1,061)
(162)
(535)
9
154
270
1,614
3,193
2,134
3,721
4,789
4,183
(Inc.)/Dec. in fixed assets
(161)
(338)
(488)
(99)
(406)
(400)
(Inc.)/Dec. in investments
(608)
(94)
(1,353)
(2,119)
(950)
(1,500)
147
(250)
563
(623)
(682)
(1,278)
(2,218)
(1,356)
(1,900)
-
-
-
Cash Flow from Operations
Others
Cash Flow from Investing
Issue of equity
Inc./(Dec.) in loans
145
(158)
-
(48)
55
-
Dividend paid (Incl. Tax)
(578)
(1,154)
(1,300)
(1,518)
(1,777)
(2,185)
Others
(429)
(252)
(173)
Cash Flow from Financing
(862)
(1,564)
(1,473)
(1,566)
(1,722)
(2,185)
129
947
(617)
(63)
1,711
98
Inc./(Dec.) in cash
Opening Cash balances
100
229
1,176
559
495
2,207
Closing Cash balances
229
1,176
559
495
2,206
2,305
Note: Closing Cash balances excludes term deposits with banks
October 17, 2014
10
Key ratios
Y/E March
FY2011 FY2012 FY2013
FY2014 FY2015E FY2016E
Valuation Ratio (x)
P/E (on FDEPS)
21.7
18.1
18.6
21.0
18.0
14.6
P/CEPS
20.7
17.3
17.7
19.9
17.8
13.7
P/BV
11.5
9.4
7.2
7.3
6.0
4.9
Dividend yield (%)
2.0
2.3
2.3
1.9
2.2
2.7
EV/Sales
3.2
2.6
2.4
3.0
2.4
2.0
16.4
13.5
13.4
14.7
11.9
9.6
9.4
7.8
5.8
6.0
4.8
3.9
EPS (Basic)
90.4
108.4
105.2
112.1
131.3
161.4
EPS (fully diluted)
90.4
108.4
105.2
112.1
131.3
161.4
Cash EPS
94.6
113.5
110.8
118.3
132.4
171.5
DPS
40.0
45.0
45.0
44.9
52.5
64.6
169.7
208.8
273.1
322.2
392.1
478.0
EBIT margin
18.6
18.3
17.4
23.0
22.8
23.3
Tax retention ratio
76.8
74.6
71.3
0.7
0.7
0.7
Asset turnover (x)
3.5
3.9
3.2
2.1
2.4
2.3
49.4
52.7
39.3
34.3
39.4
38.1
EV/EBITDA
EV / Total Assets
Per Share Data (`)
Book Value
Dupont Analysis
ROIC (Post-tax)
Cost of Debt (Post Tax)
Leverage (x)
Operating ROE
0.2
8.5
0.5
0.2
0.2
0.4
(0.9)
(1.1)
(0.9)
(0.9)
(1.0)
(0.9)
2.7
5.6
5.3
2.8
0.6
3.1
62.1
59.5
46.9
46.8
45.3
45.8
Returns (%)
ROCE (Pre-tax)
Angel ROIC (Pre-tax)
65.6
72.6
63.2
48.7
54.9
54.0
ROE
66.7
57.3
43.7
34.8
31.3
33.8
4.8
5.8
5.5
4.9
5.3
5.8
11
11
12
12
12
12
Turnover ratios (x)
Asset Turnover (Gross Block)
Inventory / Sales (days)
Receivables (days)
7
7
11
14
13
13
46
43
44
52
48
43
(33)
(35)
(31)
(26)
(23)
(17)
Net debt to equity
(0.9)
(1.1)
(0.9)
(0.9)
(1.0)
(0.9)
Net debt to EBITDA
(1.5)
(1.7)
(1.9)
(2.2)
(2.4)
(2.2)
160.7 6,428.3
9,454.2
9,682.3
5,519.6
Payables (days)
WC cycle (ex-cash) (days)
Solvency ratios (x)
Interest Coverage (EBIT / Int.) 1,803.8
October 17, 2014
11
Research Team Tel: 022 - 39357800
E-mail: research@angelbroking.com
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
regulatory, compliance, or other reasons that prevent us from doing so.
This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,
redistributed or passed on, directly or indirectly.
Angel Broking Pvt. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking
or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or
in the past.
Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from
or in connection with the use of this information.
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
1. Analyst ownership of the stock
Bajaj Auto
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):
October 17, 2014
Buy (> 15%)
Reduce (-5% to -15%)
Accumulate (5% to 15%)
Sell (< -15%)
Neutral (-5 to 5%)
12

Document 6570016

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