Bajaj Auto (BAJAJ-AUTO)

FairStock Score: 55/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Buffett/Graham investor, I ask first whether the business is wonderful and the price sensible. Bajaj Auto shows a strong franchise in 2/3 wheelers: ROE 26%, ROCE 28.06%, Piotroski 7/9, Altman Z 7.72, current ratio 2.83. Promoter holding 55.01% and 1.28% dividend yield show some shareholder alignment. Latest quarter sales ₹16,204 Cr and net profit ₹2,750 Cr, with sales growth 36.42% and profit growth 42.31% - impressive. But the five-year revenue CAGR is only 11.25%, so I treat the recent spurt as cyclical/one-off until proven. Debt/equity 0.56 is moderate; not a fortress if financial arms are included, but Z-score is safe. The biggest issue is price. At ₹11,700 and market cap ₹3.21 lakh Cr, P/E 27.86 and P/B 8.42 are rich. Graham Number is ₹2,957.78, giving negative margin of safety of -237.16%. PEG 4.07 and EV/EBITDA 191.98 tell me growth is already in the price. Free cash flow is -₹2,459 Cr, which Graham would want explained and reversed. The stock also trades near the top of its 52-week range of ₹8,605 - ₹12,470. FairStock score 55/100 (STEADY) matches my view: good business, not a bargain. If I owned it, I would hold only at a valuation that respects the moat; at current levels, I would not buy. I need a wider discount, improving FCF, and durable growth before committing fresh capital.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer