auto · BAJAJ_AUTO
Bajaj Auto
Bajaj Auto: PE above historical average. NARROW LEADERSHIP regime.
Price
₹11,432
Price 2026-07-30
5 day
+2.71%
Short-term move
1 month
+17.66%
Medium-term
Regime
NARROW LEADERSHIP
62% confidence
Market cap
₹282.3k Cr
neutral sector flow
Market Intelligence Analyst
Understand today's market in about 2 minutes.
“How does today's NARROW LEADERSHIP regime affect Bajaj Auto (BAJAJ_AUTO) in the auto sector?”
Price chart
₹11,374
+35.79% over period
About Bajaj Auto
Bajaj Auto Limited, together with its subsidiaries, engages in the development, manufacture, and distribution of automobiles in India and internationally. The company offers motorcycles, bikes, commercial vehicles, electric two-wheelers, and three-wheeler, as well as related parts and accessories. It also provides financing services for automobiles, as well as exports its products. The company was founded in 1945 and is based in Pune, India.
At a Glance
RSI pattern warning
RSI oversold bounces for this stock succeeded only 0% of the time (avg -7.7% over 14 days) — not a reliable pattern.
52-week position
Trading at 105.5% of 52-week high
Technicals
RSI 14
77.5
Trend
uptrend
50 DMA
Above
200 DMA
Above
Key metrics
P/E ratio
26.3
43th pct · 7 quarterly points (limited history)
P/B
7.3
ROE
28.1%
Strong profitability — 28.1% return on equity
Market cap
₹282.3k Cr
Revenue growth
3700.0% YoY
Promoter
60.0%
52-week range
₹7,858.5 – ₹10,834
105.5% of high
RSI (14)
77.5
uptrend
vs 50 DMA
Above
DMA ₹10,313.43
Fundamental
80/100
STRONG
Trust
95/100
Verification
Coverage
100/100
HIGH
Quick Take
Bajaj Auto scores 80/100 on fundamentals (strong). Bajaj Auto: PE above historical average. NARROW LEADERSHIP regime.
Fundamental Score: 80/100 · STRONG · 3 signals detected
DuPont Analysis
ROE 30.3% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 30.28% is strong efficiency-driven and stable. Net margin 17.1%, asset turnover 0.89x, leverage 2.0x.
What This Means
Net margin of 17.1% means the company keeps ₹17.1 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 0.89x 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
31.0%
Operating
24.4%
Net
17.1%
Gross margin 31.0% → operating margin 24.4% → net margin 17.1%. Margins are DECLINING. Check if input costs are rising or competition is pressuring pricing.
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 12.6x — very comfortable. Debt service is not a concern. Debt/EBITDA at 1.3x is low — balance sheet has capacity.
Free Cash Flow
STRONGFCF margin at 2.7% — barely positive. Limited cash after capex.
Peer comparison
| Stock | Price | 5D | P/E | ROE | Rev growth | Mcap |
|---|---|---|---|---|---|---|
| EICHERMOT Eicher Motors | ₹7,830.5 | +2.5% | 37.5 | 23.8% | 1910% | ₹2.1L Cr |
| BOSCHLTD Bosch Limited | ₹41,550 | -1.6% | 44.6 | 19.4% | 1800% | ₹1.2L Cr |
| BHARATFORG Bharat Forge | ₹2,164.7 | -0.5% | 94 | 11.6% | 1750% | ₹1.0L Cr |
| HEROMOTOCO Hero MotoCorp | ₹5,325 | +4.4% | 17.4 | 28% | 3020% | ₹100.0k Cr |
| ASHOKLEY Ashok Leyland | ₹158.09 | +4.9% | 27.8 | 21.6% | 1740% | ₹96.4k Cr |
| EXIDEIND Exide Industries | ₹452.7 | +2.9% | 41.2 | 6.2% | 920% | ₹35.2k Cr |
| ESCORTS Escorts Kubota | ₹3,013.6 | +3.7% | 24 | 12% | 2140% | ₹32.8k Cr |
| ARE_AND_M Amara Raja Energy & Mobility | ₹906.85 | +4.1% | 17.2 | 11.6% | 1550% | ₹15.4k Cr |
| BAJAJ_AUTO Bajaj Auto | ₹11,432 | +1.3% | 26.3 | 28.1% | 3700% | ₹2.8L Cr |
Key Watchpoints
Breaks above ₹12004 (+5%)
Trend reversal confirmation
Breaks below ₹10860 (-5%)
Further downside risk
PE reverts to median of 26.3 (7 quarterly points (limited history))
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.
Elevated risk score. Review audit, board, and shareholder rights metrics.
Significant income from non-operating sources. Core business may be smaller than it appears.
Working capital is consuming significant cash. Operational efficiency declining.
Potential accounting concerns. Cross-check with earnings quality flags.
Profits are from core operations, not one-offs. High quality.
Modern asset base. Lower near-term capex requirements.
Collection cycle changing. Collection improving — positive for cash flow.
Strong insider alignment. Promoters have significant skin in the game.
🔴 3 CRITICAL flags — significant concerns. Investigate before investing.
Data Quality
News Correlation
50 articles scanned for fundamental themes
