auto
Bajaj Auto
BAJAJ_AUTO · Nifty 50
₹10,042
Price 2026-06-17
At a Glance
Fundamental
85/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Bajaj Auto scores 85/100 on fundamentals (strong). Bajaj Auto: PE below historical average. BROAD EXPANSION regime.
Fundamental Score: 85/100 · STRONG · 3 signals detected
DuPont Analysis
ROE 27.7% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 27.66% is strong margin-driven and stable. Net margin of 17.8% × asset turnover of 0.78x × leverage of 2.0x.
What This Means
Net margin of 17.8% means the company keeps ₹17.8 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.78x means the company efficiently uses its assets to generate revenue. Leverage of 2.0x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
30.0%
Operating
25.0%
Net
17.8%
Gross margin 30.0% → operating margin 25.0% → net margin 17.8%. Margins are IMPROVING.
Financial Health
Earnings Quality
WEAKCash flow only covers 0.2x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.
Debt Sustainability
COMFORTABLEInterest covered 12.9x — very comfortable. Debt service is not a concern. Debt/EBITDA at 1.4x is low — balance sheet has capacity.
Free Cash Flow
STRONGFCF margin at 3.1% — moderate. Generating cash after investments.
Peer Comparison
Bajaj Auto is compared against 10 peers in the auto sector.
Key Watchpoints
Breaks above ₹10544 (+5%)
Trend reversal confirmation
Breaks below ₹9540 (-5%)
Further downside risk
PE reverts to 5Y median of 26.3
Valuation normalization
Auto sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
OCF is only 0.2x net income. Profit not converting to cash — aggressive accounting possible.
Working capital is consuming significant cash. Operational efficiency declining.
Elevated risk score. Review audit, board, and shareholder rights metrics.
Potential accounting concerns. Cross-check with earnings quality flags.
Profits are from core operations, not one-offs. High quality.
Collection cycle changing. Collection improving — positive for cash flow.
Strong insider alignment. Promoters have significant skin in the game.
🔴 2 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes