Which stock pays the highest dividend in 2021? – Bajaj Auto Ltd

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-DATEDIVIDEND AMOUNTDIVIDEND TYPE
July 8, 2021140.00FINAL
March 3, 2020120.00INTERIM
July 11, 201960.00FINAL

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

YearRevenue(cr.)Profit(cr.)
202129,323.864,857.02
202031,764.73 5,211.91
201932,393.874,927.61
201826,664.804,218.95

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
6,328.274,847.935,600.594,715.74

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
2,860.293,553.702,302.554,131.42

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 HoldingForeign Institution
Mutual Fund
Other Domestic InstitutionsRetail & Others
Jun 202153.70%11.99%3.65%9.06%21.77%
Mar 202153.70%11.82%3.40%8.88%22.02%
Dec 202053.70%13.06%3.09%6.04%24.11%
Sep 202053.70%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.

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

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.

Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss

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