Our 4th company in the Series of Which stock pays the highest dividend in india 2021 is Bajaj Auto Ltd.
Here is the detail of dividend of Bajaj Auto Ltd.
| EX-DATE | DIVIDEND AMOUNT | DIVIDEND TYPE |
| July 8, 2021 | 140.00 | FINAL |
| March 3, 2020 | 120.00 | INTERIM |
| July 11, 2019 | 60.00 | FINAL |
You can see company given dividend Rs. 140.00 in Aug. 25, 2021.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Bajaj Auto Limited develops, manufactures, and distributes automobiles in India. It operates through two segments, Automotive and Investments. The company offers motorcycles, commercial vehicles, electric two-wheelers, etc., as well as related parts. It also exports its products to approximately 70 countries in Latin America, Africa, South Asia, the Middle East, Europe, and the Asia Pacific. The company was founded in 1945 and is based in Pune, India.
Now Let’s check the important fundamental figures of this company. This is a large cap company with Market Cap ₹1,09,412cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 22.53
Sector PE Ratio: -378.70
PE Ratio of this company is high than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 4.01
Sector PB Ratio : 5.25
PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 3.70%
Sector Dividend Yield : 0.59%
Dividend Yield of this company is high than Sector. Dividend of this is Good than the peers of this company.
ROE: 17.8%
ROCE: 21.25%
ROE (Return on equity) and ROCE (Return on capital equity) is Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2021 | 29,323.86 | 4,857.02 |
| 2020 | 31,764.73 | 5,211.91 |
| 2019 | 32,393.87 | 4,927.61 |
| 2018 | 26,664.80 | 4,218.95 |
You can see the company growth clearly in the above table, in 2019 Net profit was 4,927.61 Cr. only and in 2020, It increased to 5,211.91 Cr. and in 2021, it is decreased to 4,857.02 Cr.
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2021 | 2020 | 2019 | 2018 |
| 6,328.27 | 4,847.93 | 5,600.59 | 4,715.74 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2020 , Company have 6,328.27 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2021 | 2020 | 2019 | 2018 |
| 2,860.29 | 3,553.70 | 2,302.55 | 4,131.42 |
Debt Level: BAJAJ-AUTO is debt free.
Reducing Debt: BAJAJ-AUTO has no debt compared to 5 years ago when its debt to equity ratio was 1.2%.
Debt Coverage: BAJAJ-AUTO has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: BAJAJ-AUTO has no debt, therefore coverage of interest payments is not a concern.
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Jun 2021 | 53.70% | 11.99% | 3.65% | 9.06% | 21.77% |
| Mar 2021 | 53.70% | 11.82% | 3.40% | 8.88% | 22.02% |
| Dec 2020 | 53.70% | 13.06% | 3.09% | 6.04% | 24.11% |
| Sep 2020 | 53.70% | 13.56% | 2.96% | 7.44% | 22.34% |
Above table showing there is no big change in Promotors holding which is 53.70% in June 2021. FIIs invested in June 2021 with 11.99% and retail investor is 21.77%.
Now We’ll check the return of the company, This company started from Rs. 304.08 at 8 May 2008. This company given 30.10% returns in last 1 year from 2020 to 7 Sep 2021.
Investment Checklist for Bajaj Auto Ltd.
- The company is currently profitable
- Earnings are forecast to grow by an average of 10.5% per year for the next 3 years
- They are debt free
- Dividend of 3.71% is sustainable
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- Profit margins decreased but not substantially
- They have sufficient analyst coverage
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹333B)
- Market cap is meaningful (₹1,091B)
- BAJAJ-AUTO does not have negative shareholders equity.
According to its historical performance we can predict stock target.
[membership_protected_content user=non-member]
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
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[membership_protected_content]
Entry Buying Zone : 3500 to 3600
Target: 4500 (35% Upside)
Time Horizon: 1 Year
Risk Profile: Low Risk (Stock is 1.88x as volatile as Nifty)
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Hope you liked Our 4th company in the Series of Which stock pays the highest dividend in India 2021. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
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