Case study

BAJAJ-AUTO

Bajaj Auto

Worth a closer look
0Score

Bajaj Auto (BAJAJ-AUTO) Stock Analysis & Case Study

Is BAJAJ-AUTO a good buy? The data-driven verdict.

Bajaj Auto (BAJAJ-AUTO) trades at ₹10,191,on the numbers it worth a closer look, a Downstox Snapshot Score of 58/100.

On the numbers, Bajaj Auto (BAJAJ-AUTO) worth a closer look, a Downstox Snapshot Score of 58/100, weighing premium at 26.4× earnings, ROE of 29.1%. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 20272031.

Last updated . Data snapshot for research, not investment advice.

The Downstox take on BAJAJ-AUTO

The interesting tension here is a business that earns like a franchise but is priced like one too. ROE near 29 percent and ROCE around 28 percent say Bajaj turns capital into profit with very little drag, and a P/E in the mid-twenties means the market already pays up for that quality rather than treating it as a cheap two-wheeler cyclical. The dividend yield under 1.5 percent suggests cash is being retained for growth, not handed back. The detail worth watching is the Piotroski score of 4, which hints the recent operating and balance-sheet trend is softer than the headline returns imply.

Downstox editorial view, written by our own analysts. Information, not investment advice.

BAJAJ-AUTO fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹2.85L Cr
Current price
₹10,191
P/E ratio
26.4×
P/B ratio
7.34×
Book value
₹1,389
Dividend yield
1.47%
ROCE
28.2%
ROE
29.1%
Piotroski F-Score
4/9

Is BAJAJ-AUTO overvalued? BAJAJ-AUTO P/E vs its Auto

BAJAJ-AUTO's P/E of 26.4× sits above the Auto peer median of 26.4×, so on earnings it screens in line with peers, while its 1.47% dividend yield is above the peer median of 1.08%.

BAJAJ-AUTO P/E
26.4×
Peer median P/E
26.4×
BAJAJ-AUTO div yield
1.47%
Peer median yield
1.08%

The bull case for BAJAJ-AUTO

  • High return on equity (29.1%), the business compounds shareholder capital efficiently, the hallmark of a quality franchise.
  • Strong ROCE (28.2%) shows the core business earns well above its cost of capital.

The bear case & risks

  • At 26.4× earnings the stock carries a premium to the market, strong growth is already in the price, so any miss tends to be punished.

BAJAJ-AUTO Piotroski F-Score: 4/9, how financially strong is it?

4/9

The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. BAJAJ-AUTO scores 4/9,mixed financial health.

BAJAJ-AUTO MTF margin & leverage, Upstox, Zerodha, Groww, Dhan

Margin Trading Facility lets you buy BAJAJ-AUTO with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
Upstox27.1%3.7×
Zerodha23.1%4.3×
DhanCHEAPEST22.0%4.5×

Compare every broker on the BAJAJ-AUTO MTF page.

BAJAJ-AUTO vs peers,Auto comparison

StockP/EDiv yieldMarket cap
BAJAJ-AUTO (this stock)26.4×1.47%₹2.85L Cr
MARUTI28.8×1.04%₹4.22L Cr
EICHERMOT37.6×0.92%₹2.09L Cr
HEROMOTOCO17.1×3.71%₹99,728 Cr
M&M21.5×1.08%₹3.81L Cr
TVSMOTOR54.4×0.34%₹1.66L Cr
ASHOKLEY24.8×2.23%₹92,308 Cr

About Bajaj Auto: sector, index & market-cap context

Bajaj Auto (BAJAJ-AUTO) is a large-cap NSE-listed company in the Auto sector, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹2.85L Cr. See more Nifty 50 stocks.

How the BAJAJ-AUTO Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of Bajaj Auto's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

BAJAJ-AUTO analysis, FAQs

Is Bajaj Auto (BAJAJ-AUTO) a good buy?

On the numbers, Bajaj Auto (BAJAJ-AUTO) worth a closer look, a Downstox Snapshot Score of 58/100, weighing premium at 26.4× earnings, ROE of 29.1%. This is a data snapshot for research, not investment advice.

Is BAJAJ-AUTO overvalued or undervalued?

BAJAJ-AUTO trades at 26.4× earnings versus a peer median of 26.4×, so it screens richer than its Auto peers.

What is the bull case for BAJAJ-AUTO?

High return on equity (29.1%), the business compounds shareholder capital efficiently, the hallmark of a quality franchise. Strong ROCE (28.2%) shows the core business earns well above its cost of capital.

What are the risks in BAJAJ-AUTO?

At 26.4× earnings the stock carries a premium to the market, strong growth is already in the price, so any miss tends to be punished.

More on BAJAJ-AUTO