Company Name: Bajaj Auto Ltd
Ticker: NSE: BAJAJ-AUTO
Sector: Auto – Two & Three-Wheelers
Founded: 1945
Market Cap: ~₹2.7 lakh crore (as of July 2025)
🏍️ Why Bajaj Auto?
Bajaj Auto is one of India’s most iconic automotive companies. Known for its motorcycles, scooters, and three-wheelers, the company has built a strong domestic presence while becoming a formidable exporter of two-wheelers to over 70 countries.
Its product portfolio includes some of the most trusted names in the Indian market like Pulsar, Dominar, Platina, and RE (three-wheelers), along with its newer foray into electric vehicles through the Chetak EV.
📈 What Makes It Stand Out?
- Global Export Leader:
Bajaj Auto is the #1 two-wheeler exporter from India, accounting for over 50% of its total volumes. This helps reduce dependence on the Indian market and cushions the company against local economic slowdowns. - Strong Balance Sheet:
Zero debt. Massive cash reserves. Bajaj Auto is a textbook example of financial discipline. It consistently generates free cash flow and rewards shareholders with healthy dividends and buybacks. - EV Transition – With Caution:
Bajaj is not rushing into the EV game blindly. Instead, it’s adopting a calibrated approach with the electric Chetak. The company understands that the two-wheeler EV market is price-sensitive and infra-dependent—so it’s taking measured steps to ensure profitability over mindless expansion. - Premium Play in a Mass Market:
With brands like Pulsar and Dominar, Bajaj dominates the premium commuter and sports bike category. It has created strong brand loyalty and high margins in a segment where many players struggle.
💸 Financial Snapshot (FY24–25 Highlights):
- Revenue: ₹46,000+ crore
- Operating Margin: ~20% (among the highest in the industry)
- Net Profit: ₹8,500+ crore
- Dividend Yield: ~2.5%
- ROCE: Over 25% – a sign of efficient capital allocation
🧠 Paisa Pyaar Portfolio POV:
Bajaj Auto is a great example of a legacy business that’s adapting without losing its identity. Its export strength, solid financials, and smart EV strategy make it a core holding in our Paisa Pyaar portfolio.
It’s not just a motorcycle stock—it’s a cash-generating, capital-efficient company with long-term growth levers.
📌 TL;DR – Why We Love Bajaj Auto:
✅ Export Champion
✅ Zero Debt, High Cash
✅ Smart EV Play
✅ Great Dividend History
✅ Consistent Performer
💰 Real Wealth Example: ₹1 Lakh in Bajaj Auto – What If?
Let’s say an investor had invested ₹1,00,000 in Bajaj Auto shares in 2002, around the time it was demerging and focusing purely on its core auto business.
At that time, the adjusted share price (post bonuses and stock splits) was around ₹50.
So ₹1,00,000 would’ve bought approx 2,000 shares.
Fast forward to 2025, the stock trades around ₹9,200 per share.
📈 Current Value of Investment:
2,000 shares × ₹9,200 = ₹1.84 Crore
🎁 And That’s Without Counting Dividends
Bajaj Auto has consistently paid healthy dividends over the years—often ₹100+ per share annually in recent years. Over two decades, the cumulative dividends alone could amount to ₹15–20 lakh or more, depending on reinvestment and timing.
🔁 Bonus & Split Adjustments
In this time, the stock has undergone:
- 1:1 Bonus in 2010
- Demerger in 2008 (into Bajaj Finserv, Bajaj Holdings)
- Regular dividend payouts
If you held onto all entities post-demerger, the total wealth would be even more.
In short:
✅ Bajaj Auto
✅ Bajaj Finserv
✅ Bajaj Holdings
Together, they’ve created multi-crore value from a single lakh over two decades.
🧠 Bottom Line :
This is the power of buying quality businesses and staying invested. Bajaj Auto didn’t just grow; it evolved, expanded globally, stayed profitable, and rewarded shareholders handsomely.
In the world of long-term investing, time in the market beats timing the market. Bajaj Auto is proof.
🛒 Disclosure:
Not a recommendation. Do your own research (DYOR) or consult a SEBI-registered advisor before investing.
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