This document provides a history of Bajaj Auto Ltd, a major Indian manufacturer of scooters and motorcycles. It discusses how the company was founded in 1945 and began producing scooters under license from Piaggio of Italy in 1960. Over the decades, Bajaj Auto introduced many new models and saw significant growth, becoming one of the largest two-wheeler manufacturers in the world by the 1990s. However, it also faced increasing competition from other Indian and international brands. The document outlines some of Bajaj Auto's strategic investments and partnerships over the years to develop new technologies and models to remain competitive in the market.
Hello! Find more information about short presentation topics for MBA in 2018-2019. More https://www.mbadissertation.org/presentation-topics-for-mba-students/
Here are the key steps I took for data collection for my project:
Primary Data Collection:
1. Questionnaire: I designed and administered a questionnaire to collect primary data from respondents in Surat. The questionnaire gathered information on demographics, awareness and perception of life insurance, current insurance ownership, needs and preferences.
2. Interviews: I conducted in-depth interviews with 20 individuals from different age groups, occupations and income levels to get qualitative insights into their views and decision making process related to life insurance.
Secondary Data Collection:
1. Company Reports: I referred to annual reports and presentations of Kotak Life Insurance to understand their business, products, market share etc.
2. Industry Reports:
The Risk and return analysis is important to equity shares investors in the share
market. The need of equity shares at the time of preliminary stage of company or
bank to raising fund for establish company and starting a business. The equity share
holder is an actual owner of company or bank.
This document is a project report submitted by Bhargava SaiKumar Sudikonda to TVS Motor Company as part of an internship. The report analyzes competitors of TVS Jupiter scooter and customer reservations about purchasing the Jupiter in Vijayawada and Guntur regions. The objective is to make recommendations to increase Jupiter sales. Mystery shopping and customer surveys were conducted to understand factors influencing scooter purchase decisions. Key findings include low brand image for TVS, less awareness of Jupiter compared to Activa, limited sales executive knowledge, and the importance of showroom ambience. Recommendations focus on improving sales executive product knowledge and changing marketing strategy from push to pull.
A comparative study on direct equity investing and mutual fund investingAkash Jeevan
This document provides an overview of Geojit BNP Paribas, a leading retail financial services company in India. It discusses the company's operations in equity trading, mutual funds, insurance, and other financial products. Some key details include:
- Geojit BNP Paribas has over 486 offices across India and partnerships in the Middle East.
- The company offers a wide range of financial services including equities, derivatives, mutual funds, insurance, IPOs, and more through online and offline channels.
- In 2007, BNP Paribas acquired a stake in the company, becoming the largest shareholder.
- Geojit BNP Paribas has a history of over 30
This document is a report on a summer internship project for Bajaj Bikes conducted by Varun Tonk. The report includes sections on the company profile, objectives, research methodology, marketing mix plan involving segmentation, targeting, positioning, the 4Ps of product, price, place, and promotion. It also includes data analysis and interpretation, conclusions, recommendations, and limitations. The report provides an overview of Bajaj as one of the largest two and three-wheeler manufacturers in India and discusses the company's history, philosophy, products, market share and research and development efforts.
This document is a project report submitted by Rajesh Narayanan to SRM University for the partial fulfillment of an MBA degree. The report analyzes the pharmaceutical sector in India through fundamental analysis. It includes an introduction to fundamental analysis and the pharmaceutical industry/company profiles. The objective is to analyze major pharmaceutical companies through economic, industry and company analysis as well as financial ratio analysis.
Hello! Find more information about short presentation topics for MBA in 2018-2019. More https://www.mbadissertation.org/presentation-topics-for-mba-students/
Here are the key steps I took for data collection for my project:
Primary Data Collection:
1. Questionnaire: I designed and administered a questionnaire to collect primary data from respondents in Surat. The questionnaire gathered information on demographics, awareness and perception of life insurance, current insurance ownership, needs and preferences.
2. Interviews: I conducted in-depth interviews with 20 individuals from different age groups, occupations and income levels to get qualitative insights into their views and decision making process related to life insurance.
Secondary Data Collection:
1. Company Reports: I referred to annual reports and presentations of Kotak Life Insurance to understand their business, products, market share etc.
2. Industry Reports:
The Risk and return analysis is important to equity shares investors in the share
market. The need of equity shares at the time of preliminary stage of company or
bank to raising fund for establish company and starting a business. The equity share
holder is an actual owner of company or bank.
This document is a project report submitted by Bhargava SaiKumar Sudikonda to TVS Motor Company as part of an internship. The report analyzes competitors of TVS Jupiter scooter and customer reservations about purchasing the Jupiter in Vijayawada and Guntur regions. The objective is to make recommendations to increase Jupiter sales. Mystery shopping and customer surveys were conducted to understand factors influencing scooter purchase decisions. Key findings include low brand image for TVS, less awareness of Jupiter compared to Activa, limited sales executive knowledge, and the importance of showroom ambience. Recommendations focus on improving sales executive product knowledge and changing marketing strategy from push to pull.
A comparative study on direct equity investing and mutual fund investingAkash Jeevan
This document provides an overview of Geojit BNP Paribas, a leading retail financial services company in India. It discusses the company's operations in equity trading, mutual funds, insurance, and other financial products. Some key details include:
- Geojit BNP Paribas has over 486 offices across India and partnerships in the Middle East.
- The company offers a wide range of financial services including equities, derivatives, mutual funds, insurance, IPOs, and more through online and offline channels.
- In 2007, BNP Paribas acquired a stake in the company, becoming the largest shareholder.
- Geojit BNP Paribas has a history of over 30
This document is a report on a summer internship project for Bajaj Bikes conducted by Varun Tonk. The report includes sections on the company profile, objectives, research methodology, marketing mix plan involving segmentation, targeting, positioning, the 4Ps of product, price, place, and promotion. It also includes data analysis and interpretation, conclusions, recommendations, and limitations. The report provides an overview of Bajaj as one of the largest two and three-wheeler manufacturers in India and discusses the company's history, philosophy, products, market share and research and development efforts.
This document is a project report submitted by Rajesh Narayanan to SRM University for the partial fulfillment of an MBA degree. The report analyzes the pharmaceutical sector in India through fundamental analysis. It includes an introduction to fundamental analysis and the pharmaceutical industry/company profiles. The objective is to analyze major pharmaceutical companies through economic, industry and company analysis as well as financial ratio analysis.
FUNDAMENTAL ANALYSIS WITH SPECIAL REFERENCE TO PHARMACEUTICAL COMPANIES LISTE...IAEME Publication
An investment analysis is essential for the benefit of risk reduction and maximizes the gain. The investment analysis on stock market has two main approaches namely technical analysis and fundamental analysis. This study is focused on fundamental analysis of pharmaceutical companies listed in National Stock Exchange (NSE), which include selected five companies for a period of five years from 2011 to 2015. The fundamental analysis consists of three parts such as economic analysis, industry analysis and company analysis. The economic analysis consists of economic indicators which influence the security market like GDP, inflation, interest rate, foreign reserves, export and agricultural production for the study period.
A project report on indian mobile marketProjects Kart
The document discusses a study conducted on the brand equity of mobile service providers in Karnataka, India. It aims to analyze which brands have the highest brand equity and customer loyalty. Data was collected through surveys of 150 customers of six major brands regarding their brand perceptions, preferences, and advertisement recall. The study found that Airtel had the strongest brand equity and was recalled most by customers for advertisements. It also examined factors like network quality, customer service, and call costs that influence customers' brand preferences.
This document provides a project report on studying consumer expectations for the Suzuki Access 125cc scooter in Latur, India. It includes an introduction, objectives, company and industry profiles, product profile, research methodology, data analysis and findings, suggestions, and conclusions. The research found that Suzuki's launch of the Access 125 increased its market share by attracting new customers and retaining existing ones. Suzuki saw a 47.66% sales growth in December 2009 compared to the previous year due to the positive response to new products like the Access 125. The study helps Suzuki understand customer perceptions of the Access 125 and its awareness level in Latur to gain market share.
A Project Report on - FINANCIAL PERFORMANCE OF LIC AND PRIVATE SECTOR LIFE...Karteek Chedadeepu
FINANCIAL PERFORMANCE OF LIC AND PRIVATE SECTOR LIFE INSURANCE COMPANIES IN INDIA
- A COMPARATIVE ANALYSIS USING CARAMEL MODEL..
This is my project report. I did my project on the financial performance of private and public sector of Life insurance companies India by using CARAMEL model.
The document provides an overview of technical analysis and fundamental analysis for evaluating securities. It discusses various technical analysis techniques like charts, support/resistance levels, trends and indicators. It also outlines the different aspects of fundamental analysis including economic, industry and company analysis. Key factors covered in fundamental analysis include barriers to entry, threat of substitution, bargaining power of suppliers/buyers, and financial ratios. The document aims to equip readers with tools and frameworks for conducting equity analysis of stocks.
A survey on customer satisfaction of suzuki access 125 ccProjects Kart
The document is a project report submitted for a master's degree that analyzes customer satisfaction with Suzuki's Access 125cc scooter. It includes a student declaration, examiner certification, table of contents, acknowledgements, and preface. The executive summary finds that Suzuki has increased market share and helped retain customers with the Access 125, seeing a 47.66% sales growth in December 2009. The report aims to understand customer satisfaction levels with the scooter.
Project report of research methodology on comparative study of bajaj vs hero ...Projects Kart
The document provides background information on Hero Honda Motors Limited, a joint venture between Hero Group of India and Honda Motor Company of Japan established in 1984. It discusses Hero Honda's history and rise to become the world's largest manufacturer of two-wheeled vehicles. The document also profiles some of Hero Honda's most popular motorcycle models, describes elements of the company's operations and culture, and notes its continued success and growth over the years.
A project report on fundamental & technical analysis of automobile sector at ...Babasab Patil
This document provides an executive summary of a study analyzing the automobile sector in India through fundamental and technical analysis. Specifically, it analyzes Tata Motors and Maruti Suzuki.
The study aims to predict stock prices and identify optimal times to buy and sell shares. It uses tools like Relative Strength Index (RSI), moving averages, and candlestick charts to analyze past stock performance and identify trends.
Key findings include identifying periods when RSI signals indicated selling Tata Motors and Maruti Suzuki shares, as well as periods of low RSI that signaled buying opportunities. Moving averages and candlestick charts also provided insights into price trends.
The automobile sector in India is growing rapidly and these companies are financially
Fundamental and technical analysis @ kotak mahindra mba project reportBabasab Patil
This document discusses fundamental and technical analysis for investing in stocks. It provides background on the Indian stock market, including key indices like SENSEX and NIFTY. Fundamental analysis examines real data like financial conditions and management of companies to evaluate stock value, while technical analysis examines past price movements to predict future prices. The document analyzes stocks from BHEL and L&T using both fundamental and technical analysis to predict future prices and make investment recommendations. It also discusses factors that influence stock prices like the economy, industry conditions, and individual company performance.
A dissertation on mutual fund and investor’s behaviourProjects Kart
This document is a dissertation on mutual funds and investor behavior submitted for a post graduate diploma in management. It discusses the classification of mutual fund schemes according to their objectives and evaluates their performance using net asset value. It also includes a questionnaire to understand consumer behavior towards mutual funds. The dissertation acknowledges the guidance provided by the author's faculty guide. It contains an abstract, table of contents and sections on the introduction to mutual funds, the mutual fund industry, performance measures, the investor's point of view, analysis and conclusions.
Sharekhan is a leading retail broking firm in India with over 1005 centers across 410 cities. It is the retail broking arm of SSKI Group which has over 80 years of experience in stock broking. Sharekhan offers equity trading, investment advisory, mutual funds, and depository services to over 5.45 lakh clients. It aims to educate and empower individual investors through quality advice and superior services. Sharekhan has a majority stake held by CITI Group and also has HSBC, Intel, and Carlyle as other investors. It is among the top three branded retail brokers in India with an average daily trading volume of Rs. 856 crores.
“Technical analysis” a study on selected stocksBozo All
The document discusses technical analysis and its use in analyzing stocks. It provides an overview of technical analysis, including that it uses historical price and volume data to identify trends and patterns in order to predict future price movements. It also notes that technical analysis assumes markets are primarily psychological rather than logical. The document then discusses various technical analysis tools and methods, such as candlestick techniques and Dow theory. It concludes by noting that economists have traditionally been skeptical of technical analysis due to theories of efficient markets.
This document is a summer internship project report submitted by Nitin C. Lasunte to Rastrasant Tukadoji Maharaj Nagpur University. It examines the general banking and finance practices at Nagpur Nagarik Sahakari Bank Ltd. in Nagpur, India. The report includes sections on the bank's management structure, various deposit schemes like savings accounts and current accounts, services offered, research methodology, financial analysis, data analysis, and conclusions and recommendations. It was prepared under the supervision of Prof. Bhavesh Agrawal during Nitin's MBA program at Nagpur Institute of Technology.
The document provides details about a project report on consumer satisfaction towards Bajaj bikes, including certificates of completion, declarations, acknowledgements, an executive summary and table of contents that outline the report's sections on the two-wheeler industry, Bajaj Auto company profile, research methodology, objectives, data analysis, findings, conclusions and recommendations. It examines consumer satisfaction with Bajaj bikes through surveys and analysis of the two-wheeler market segment.
This document provides an overview of the evolution and development of the Indian capital market. It discusses how stock markets originated in major Indian cities like Bombay, Calcutta, and Madras in the late 1800s as commercial enterprises grew. The stock exchanges in these cities were formally established in the late 1800s and early 1900s. The document then outlines some of the major booms and slumps that occurred over subsequent decades in various industries like cotton, jute, tea, and coal, and how this impacted the growth of regional stock exchanges across India.
Equity analysis of telecom sector for anand rathi securities by shilpa mandhanRavichandra Ks
The document outlines a project report submitted by Shilpa Mandhan to the University of Pune on conducting an equity analysis of the telecom sector for Anand Rathi Securities Ltd. under the guidance of Prof. Mahesh Halale. It provides details about Shilpa Mandhan, the project, Anand Rathi Securities Ltd., and the scope and objectives of the equity analysis project.
Project on equity analysis on banking sectorHIMANI PADIA
This document outlines an equity analysis project on the banking sector submitted by Himani P. Padia to partially fulfill requirements for a PGDM program. The project was conducted under the guidance of faculty member Prof. Jagadish Reddy and the Director of Academics Prof. Mir Irfan Ul Haque. The analysis focuses on evaluating current growth trends in banking sector stocks in the equity market based on a study of the Indian economy.
Bajaj Auto is the 3rd largest motorcycle manufacturer globally and 2nd largest in India. It began in 1948 importing and selling Vespa scooters. Today it has 3 main plants and manufactures a range of two-wheelers and commercial vehicles. It has seen strong growth through expanding its product range and exports, with sales reaching over 20 million units annually in recent years. However, motorcycle growth has slowed in India, so Bajaj is focusing on new strategies like gearless scooters, expanding into four-wheelers, improving service and financing to continue its success.
The document provides background information on Janata Bank Limited (JBL), one of the largest state-owned commercial banks in Bangladesh. It discusses the history of banking in Bangladesh and the nationalization of banks in 1972. JBL was established by taking over branches of two former private banks. Currently, JBL has over 900 branches and over 14,000 employees. The report provides an overview of JBL's management, vision, mission, and financial details such as deposits, capital, assets, and branches. It outlines the bank's products and services, including deposit schemes, utility services, financing, and remittances.
This document provides an overview of Bajaj Auto Ltd., including its history, profile, brands, and subsidiaries. Some key points:
- Bajaj Auto was founded in 1926 and is the largest manufacturer of scooters and motorcycles in India. It has a technical partnership with Kawasaki Heavy Industries of Japan.
- The company was initially an importer and later obtained a license to manufacture vehicles in India. It became the Indian licensee for Vespa scooters in 1960.
- Bajaj Auto has grown to become the world's 4th largest manufacturer of two and three-wheelers. It produces scooters, motorcycles and auto rickshaws under brands like
FUNDAMENTAL ANALYSIS WITH SPECIAL REFERENCE TO PHARMACEUTICAL COMPANIES LISTE...IAEME Publication
An investment analysis is essential for the benefit of risk reduction and maximizes the gain. The investment analysis on stock market has two main approaches namely technical analysis and fundamental analysis. This study is focused on fundamental analysis of pharmaceutical companies listed in National Stock Exchange (NSE), which include selected five companies for a period of five years from 2011 to 2015. The fundamental analysis consists of three parts such as economic analysis, industry analysis and company analysis. The economic analysis consists of economic indicators which influence the security market like GDP, inflation, interest rate, foreign reserves, export and agricultural production for the study period.
A project report on indian mobile marketProjects Kart
The document discusses a study conducted on the brand equity of mobile service providers in Karnataka, India. It aims to analyze which brands have the highest brand equity and customer loyalty. Data was collected through surveys of 150 customers of six major brands regarding their brand perceptions, preferences, and advertisement recall. The study found that Airtel had the strongest brand equity and was recalled most by customers for advertisements. It also examined factors like network quality, customer service, and call costs that influence customers' brand preferences.
This document provides a project report on studying consumer expectations for the Suzuki Access 125cc scooter in Latur, India. It includes an introduction, objectives, company and industry profiles, product profile, research methodology, data analysis and findings, suggestions, and conclusions. The research found that Suzuki's launch of the Access 125 increased its market share by attracting new customers and retaining existing ones. Suzuki saw a 47.66% sales growth in December 2009 compared to the previous year due to the positive response to new products like the Access 125. The study helps Suzuki understand customer perceptions of the Access 125 and its awareness level in Latur to gain market share.
A Project Report on - FINANCIAL PERFORMANCE OF LIC AND PRIVATE SECTOR LIFE...Karteek Chedadeepu
FINANCIAL PERFORMANCE OF LIC AND PRIVATE SECTOR LIFE INSURANCE COMPANIES IN INDIA
- A COMPARATIVE ANALYSIS USING CARAMEL MODEL..
This is my project report. I did my project on the financial performance of private and public sector of Life insurance companies India by using CARAMEL model.
The document provides an overview of technical analysis and fundamental analysis for evaluating securities. It discusses various technical analysis techniques like charts, support/resistance levels, trends and indicators. It also outlines the different aspects of fundamental analysis including economic, industry and company analysis. Key factors covered in fundamental analysis include barriers to entry, threat of substitution, bargaining power of suppliers/buyers, and financial ratios. The document aims to equip readers with tools and frameworks for conducting equity analysis of stocks.
A survey on customer satisfaction of suzuki access 125 ccProjects Kart
The document is a project report submitted for a master's degree that analyzes customer satisfaction with Suzuki's Access 125cc scooter. It includes a student declaration, examiner certification, table of contents, acknowledgements, and preface. The executive summary finds that Suzuki has increased market share and helped retain customers with the Access 125, seeing a 47.66% sales growth in December 2009. The report aims to understand customer satisfaction levels with the scooter.
Project report of research methodology on comparative study of bajaj vs hero ...Projects Kart
The document provides background information on Hero Honda Motors Limited, a joint venture between Hero Group of India and Honda Motor Company of Japan established in 1984. It discusses Hero Honda's history and rise to become the world's largest manufacturer of two-wheeled vehicles. The document also profiles some of Hero Honda's most popular motorcycle models, describes elements of the company's operations and culture, and notes its continued success and growth over the years.
A project report on fundamental & technical analysis of automobile sector at ...Babasab Patil
This document provides an executive summary of a study analyzing the automobile sector in India through fundamental and technical analysis. Specifically, it analyzes Tata Motors and Maruti Suzuki.
The study aims to predict stock prices and identify optimal times to buy and sell shares. It uses tools like Relative Strength Index (RSI), moving averages, and candlestick charts to analyze past stock performance and identify trends.
Key findings include identifying periods when RSI signals indicated selling Tata Motors and Maruti Suzuki shares, as well as periods of low RSI that signaled buying opportunities. Moving averages and candlestick charts also provided insights into price trends.
The automobile sector in India is growing rapidly and these companies are financially
Fundamental and technical analysis @ kotak mahindra mba project reportBabasab Patil
This document discusses fundamental and technical analysis for investing in stocks. It provides background on the Indian stock market, including key indices like SENSEX and NIFTY. Fundamental analysis examines real data like financial conditions and management of companies to evaluate stock value, while technical analysis examines past price movements to predict future prices. The document analyzes stocks from BHEL and L&T using both fundamental and technical analysis to predict future prices and make investment recommendations. It also discusses factors that influence stock prices like the economy, industry conditions, and individual company performance.
A dissertation on mutual fund and investor’s behaviourProjects Kart
This document is a dissertation on mutual funds and investor behavior submitted for a post graduate diploma in management. It discusses the classification of mutual fund schemes according to their objectives and evaluates their performance using net asset value. It also includes a questionnaire to understand consumer behavior towards mutual funds. The dissertation acknowledges the guidance provided by the author's faculty guide. It contains an abstract, table of contents and sections on the introduction to mutual funds, the mutual fund industry, performance measures, the investor's point of view, analysis and conclusions.
Sharekhan is a leading retail broking firm in India with over 1005 centers across 410 cities. It is the retail broking arm of SSKI Group which has over 80 years of experience in stock broking. Sharekhan offers equity trading, investment advisory, mutual funds, and depository services to over 5.45 lakh clients. It aims to educate and empower individual investors through quality advice and superior services. Sharekhan has a majority stake held by CITI Group and also has HSBC, Intel, and Carlyle as other investors. It is among the top three branded retail brokers in India with an average daily trading volume of Rs. 856 crores.
“Technical analysis” a study on selected stocksBozo All
The document discusses technical analysis and its use in analyzing stocks. It provides an overview of technical analysis, including that it uses historical price and volume data to identify trends and patterns in order to predict future price movements. It also notes that technical analysis assumes markets are primarily psychological rather than logical. The document then discusses various technical analysis tools and methods, such as candlestick techniques and Dow theory. It concludes by noting that economists have traditionally been skeptical of technical analysis due to theories of efficient markets.
This document is a summer internship project report submitted by Nitin C. Lasunte to Rastrasant Tukadoji Maharaj Nagpur University. It examines the general banking and finance practices at Nagpur Nagarik Sahakari Bank Ltd. in Nagpur, India. The report includes sections on the bank's management structure, various deposit schemes like savings accounts and current accounts, services offered, research methodology, financial analysis, data analysis, and conclusions and recommendations. It was prepared under the supervision of Prof. Bhavesh Agrawal during Nitin's MBA program at Nagpur Institute of Technology.
The document provides details about a project report on consumer satisfaction towards Bajaj bikes, including certificates of completion, declarations, acknowledgements, an executive summary and table of contents that outline the report's sections on the two-wheeler industry, Bajaj Auto company profile, research methodology, objectives, data analysis, findings, conclusions and recommendations. It examines consumer satisfaction with Bajaj bikes through surveys and analysis of the two-wheeler market segment.
This document provides an overview of the evolution and development of the Indian capital market. It discusses how stock markets originated in major Indian cities like Bombay, Calcutta, and Madras in the late 1800s as commercial enterprises grew. The stock exchanges in these cities were formally established in the late 1800s and early 1900s. The document then outlines some of the major booms and slumps that occurred over subsequent decades in various industries like cotton, jute, tea, and coal, and how this impacted the growth of regional stock exchanges across India.
Equity analysis of telecom sector for anand rathi securities by shilpa mandhanRavichandra Ks
The document outlines a project report submitted by Shilpa Mandhan to the University of Pune on conducting an equity analysis of the telecom sector for Anand Rathi Securities Ltd. under the guidance of Prof. Mahesh Halale. It provides details about Shilpa Mandhan, the project, Anand Rathi Securities Ltd., and the scope and objectives of the equity analysis project.
Project on equity analysis on banking sectorHIMANI PADIA
This document outlines an equity analysis project on the banking sector submitted by Himani P. Padia to partially fulfill requirements for a PGDM program. The project was conducted under the guidance of faculty member Prof. Jagadish Reddy and the Director of Academics Prof. Mir Irfan Ul Haque. The analysis focuses on evaluating current growth trends in banking sector stocks in the equity market based on a study of the Indian economy.
Bajaj Auto is the 3rd largest motorcycle manufacturer globally and 2nd largest in India. It began in 1948 importing and selling Vespa scooters. Today it has 3 main plants and manufactures a range of two-wheelers and commercial vehicles. It has seen strong growth through expanding its product range and exports, with sales reaching over 20 million units annually in recent years. However, motorcycle growth has slowed in India, so Bajaj is focusing on new strategies like gearless scooters, expanding into four-wheelers, improving service and financing to continue its success.
The document provides background information on Janata Bank Limited (JBL), one of the largest state-owned commercial banks in Bangladesh. It discusses the history of banking in Bangladesh and the nationalization of banks in 1972. JBL was established by taking over branches of two former private banks. Currently, JBL has over 900 branches and over 14,000 employees. The report provides an overview of JBL's management, vision, mission, and financial details such as deposits, capital, assets, and branches. It outlines the bank's products and services, including deposit schemes, utility services, financing, and remittances.
This document provides an overview of Bajaj Auto Ltd., including its history, profile, brands, and subsidiaries. Some key points:
- Bajaj Auto was founded in 1926 and is the largest manufacturer of scooters and motorcycles in India. It has a technical partnership with Kawasaki Heavy Industries of Japan.
- The company was initially an importer and later obtained a license to manufacture vehicles in India. It became the Indian licensee for Vespa scooters in 1960.
- Bajaj Auto has grown to become the world's 4th largest manufacturer of two and three-wheelers. It produces scooters, motorcycles and auto rickshaws under brands like
The document provides an overview of the history of Bajaj Auto Limited, India's largest manufacturer of scooters and motorcycles. It details that Bajaj Auto was founded in 1945 and began producing scooters in 1961 through a licensing agreement with Italian company Piaggio. While it initially lagged behind Japanese competitors in technology, Bajaj Auto invested heavily in production capacity and new models, becoming the lowest cost producer of scooters in the world by the 1990s as it strengthened its position as the dominant player in India's two-wheeler market.
The document provides a marketing analysis of Bajaj Pulsar motorcycles. It discusses the history of Bajaj Auto and the success of the Pulsar model in driving a turnaround for the company. The report performs a SWOT analysis of Pulsar, examines shifting consumer trends towards motorcycles in the 1990s, and outlines Bajaj's marketing strategies over time for the Pulsar, including the "Definitely Male" campaign. It also provides an analysis of Pulsar's competitors in the motorcycle market.
A project report on comparative study of bajaj and hero hondaProjects Kart
The document provides an introduction and background information on Bajaj Auto Limited and Hero Honda Motorcycles Limited, two major Indian motorcycle manufacturers. It discusses the founding and history of both companies. Bajaj Auto was established in 1945 and initially imported two-wheelers before beginning domestic production in 1959. Hero Honda was formed in 1984 through a joint venture between Hero Cycles of India and Honda of Japan. The document outlines some of the popular models produced by each company over the years and provides key details like headquarters, revenue, and management.
Bajaj Auto Limited (BAL) was founded in 1945 and initially launched scooters and three-wheelers in the Indian market. In 1991, after liberalization of the Indian economy, BAL shifted its focus from scooters to motorcycles, with an emphasis on developing the Indian two-wheeler market. The document analyzes BAL's marketing strategies, finding that it has expanded into international markets to increase sales and establish a global presence. A SWOT analysis of BAL is also included, which will help inform its marketing plan for the next five years.
This document provides an overview of an management thesis on the automobile industry in India, with a focus on Bajaj Auto Ltd and their Pulsar bikes. It discusses the growth of the two-wheeler industry in India and key factors driving demand. It then provides a detailed profile of Bajaj Auto, including their history, brands, models, market share, financial performance, awards, and outlook. Bajaj Auto is one of the largest manufacturers of two- and three-wheelers in India and globally. Their Pulsar brand has been very successful in the premium motorcycle segment of the Indian market.
This document provides an index and objectives for a research project comparing Bajaj and Hero Honda motorcycles. The index outlines the history of both companies, research methodology, analysis, conclusions, and bibliography. The objectives are to determine the market share, customer perceptions and satisfaction, and factors influencing customer choices between Bajaj and Hero Honda bikes.
This document provides a marketing analysis of Bajaj Pulsar motorcycles. It discusses the history of Bajaj Auto and how the Pulsar helped drive a turnaround for the company. The executive summary introduces the report and outlines its sections on the marketing history and SWOT analysis of Pulsar, analyzing consumer behavior and purchase decisions, and examining competitors. SWOT analyses from 2001 and 2008 show Pulsar's strengths in performance and branding evolving as opportunities emerged in new engine sizes and exports.
Bajaj Auto is an Indian motorcycle manufacturer founded in 1945. It is now the third largest motorcycle manufacturer in the world. The company has manufacturing plants in India and exports vehicles globally. In the first quarter of 2022, Bajaj Auto reported flat profits of 7.38 billion rupees, which matched expectations, as weaker rupee offset declining sales volumes but benefited exports. Going forward, Bajaj aims to remain "Distinctly Ahead" of competitors through innovation and excellence.
Bajaj Auto launched the Bajaj Pulsar motorcycle brand in November 2001 to compete in the growing performance motorcycle market in India. The Pulsar was a success, becoming a market leader and trendsetter by delivering performance, efficiency, styling, and a "macho feeling" that appealed to male bikers. This document provides an analysis of the competitive forces affecting the Pulsar brand at launch, including an overview of Bajaj Auto, the shift from scooters to motorcycles in the Indian market in the 1990s-2000s, details and milestones of the Pulsar brand, and analyses of the market segmentation, consumer behavior, and competitors surrounding the Pulsar launch.
This document provides an overview of Bajaj Auto Ltd, an Indian motorcycle and auto manufacturer. It discusses Bajaj's history beginning in 1945, products including motorcycles, scooters, and commercial vehicles. Financial data on sales and income are presented from 2005-2010. The management structure, vision, and social responsibility efforts are described. A SWOT analysis identifies strengths in R&D, distribution and performance products, while weaknesses include lack of brand recognition globally. Opportunities exist in emerging markets and new vehicle segments, while threats include low-cost competition.
This document summarizes a presentation about Bajaj Auto Ltd. It discusses the company's history, products, market segments, organizational structure, financial performance, and SWOT analysis. Bajaj Auto is a major Indian vehicle manufacturer known for scooters, motorcycles, and auto rickshaws. It is India's largest exporter of two and three-wheelers. While Bajaj enjoys strong financials and manufacturing capabilities, it could further develop new products, tap export markets, and target younger consumers to maintain growth.
36421489 bajaj-auto-ltd-business-strategy-case-study-pptPia Sole
Bajaj Auto Ltd was once the dominant player in the Indian scooter market but lost its leadership position to Honda Motorcycle Scooter India. This was due to Bajaj failing to anticipate changing consumer preferences as motorcycles became more popular than scooters. While Bajaj focused on its iconic Chetak scooter for over 30 years without innovation, competitors launched new gearless scooter and motorcycle models with better technology and design. Bajaj has since tried various strategies like launching new scooter models, lowering prices, and rebranding to regain market share in scooters and grow its motorcycle business.
Bajaj Auto is a major Indian vehicle manufacturer that was started in the 1930s. It manufactures and exports automobiles, scooters, motorcycles, and auto rickshaws. Bajaj Auto is headed by Rahul Bajaj and is one of the largest exporters of two and three-wheelers from India. The automobile industry in India is the ninth largest in the world and is expected to see around 9% growth. Bajaj Auto has achieved success with vehicles like the Discover and has sales that exceeded 65.4 billion rupees in 2004-2005.
The document provides details about an internship project report submitted by Aditya Singh for his internship with Bajaj Auto Private Limited in their Engine Assembly department. It includes sections on the company profile of Bajaj Auto, their Pantnagar plant, vendor list, introduction to hidden losses, engine assembly process, types of wastes, tools and techniques used for waste reduction, investigation and prevention of hidden losses, and conclusions. The report was submitted under the guidance of Yashika Arora from Bajaj Auto's Engine Assembly department in fulfillment of Aditya Singh's B.Tech program.
Losses of Automobile Industry In PakistanAsad Ahmed
This report summarizes the impact of imported used cars on Pakistan's local automobile industry. It finds that imports of used cars have increased dramatically in recent years, with over 55,000 cars imported in the past year, up 162% from the previous year. This has put pressure on sales of locally assembled cars, though local production still increased 23% overall. Imported Toyota, Suzuki, and Honda models constitute a major share of the used car market. The report also notes that 1000cc and smaller cars make up 45% of imports and have been gaining popularity.
The document summarizes the history and operations of Vespa scooters. It discusses how Vespa was founded in Italy in 1946 and became famous due to its appearance in the 1952 film Roman Holiday. It then describes how Vespa licensed production of its scooters to companies in India in the 1960s and 1980s before re-entering the Indian market directly in 2012. It provides details on Vespa's current model lineup and plans to invest further in India, introducing new models to capture more of the growing two-wheeler market.
This document provides a summary of a project report that analyzes consumer satisfaction between Bajaj and Hero Motor Corp. It begins with an introduction and acknowledgments. It then discusses the history and profiles of both Bajaj and Hero Motor Corp. A SWOT analysis is performed for both companies. The objectives and scope of the study are outlined. The methodology section discusses the systematic steps that will be taken to solve the research problem. In summary, the document outlines the background and approach to a comparative study of consumer satisfaction for two major Indian motorcycle manufacturers.
This document summarizes a market research report comparing the marketing strategies of Honda and BMW. It covers their product offerings, pricing approaches, distribution channels, and promotional activities. Honda offers a wider range of motorcycle models at more affordable price points to target various customer segments globally. BMW focuses on luxury automobiles and charges higher prices targeted at wealthier customers, primarily in developed markets in Europe and North America. Honda's diversified portfolio and pricing allows it to reach more markets compared to BMW.
SATTA MATKA SATTA FAST RESULT KALYAN TOP MATKA RESULT KALYAN SATTA MATKA FAST RESULT MILAN RATAN RAJDHANI MAIN BAZAR MATKA FAST TIPS RESULT MATKA CHART JODI CHART PANEL CHART FREE FIX GAME SATTAMATKA ! MATKA MOBI SATTA 143 spboss.in TOP NO1 RESULT FULL RATE MATKA ONLINE GAME PLAY BY APP SPBOSS
Industrial Tech SW: Category Renewal and CreationChristian Dahlen
Every industrial revolution has created a new set of categories and a new set of players.
Multiple new technologies have emerged, but Samsara and C3.ai are only two companies which have gone public so far.
Manufacturing startups constitute the largest pipeline share of unicorns and IPO candidates in the SF Bay Area, and software startups dominate in Germany.
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...Aleksey Savkin
The Strategy Implementation System offers a structured approach to translating stakeholder needs into actionable strategies using high-level and low-level scorecards. It involves stakeholder analysis, strategy decomposition, adoption of strategic frameworks like Balanced Scorecard or OKR, and alignment of goals, initiatives, and KPIs.
Key Components:
- Stakeholder Analysis
- Strategy Decomposition
- Adoption of Business Frameworks
- Goal Setting
- Initiatives and Action Plans
- KPIs and Performance Metrics
- Learning and Adaptation
- Alignment and Cascading of Scorecards
Benefits:
- Systematic strategy formulation and execution.
- Framework flexibility and automation.
- Enhanced alignment and strategic focus across the organization.
The Genesis of BriansClub.cm Famous Dark WEb PlatformSabaaSudozai
BriansClub.cm, a famous platform on the dark web, has become one of the most infamous carding marketplaces, specializing in the sale of stolen credit card data.
How are Lilac French Bulldogs Beauty Charming the World and Capturing Hearts....Lacey Max
“After being the most listed dog breed in the United States for 31
years in a row, the Labrador Retriever has dropped to second place
in the American Kennel Club's annual survey of the country's most
popular canines. The French Bulldog is the new top dog in the
United States as of 2022. The stylish puppy has ascended the
rankings in rapid time despite having health concerns and limited
color choices.”
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Storytelling is an incredibly valuable tool to share data and information. To get the most impact from stories there are a number of key ingredients. These are based on science and human nature. Using these elements in a story you can deliver information impactfully, ensure action and drive change.
Digital Marketing with a Focus on Sustainabilitysssourabhsharma
Digital Marketing best practices including influencer marketing, content creators, and omnichannel marketing for Sustainable Brands at the Sustainable Cosmetics Summit 2024 in New York
Easily Verify Compliance and Security with Binance KYCAny kyc Account
Use our simple KYC verification guide to make sure your Binance account is safe and compliant. Discover the fundamentals, appreciate the significance of KYC, and trade on one of the biggest cryptocurrency exchanges with confidence.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
The APCO Geopolitical Radar - Q3 2024 The Global Operating Environment for Bu...APCO
The Radar reflects input from APCO’s teams located around the world. It distils a host of interconnected events and trends into insights to inform operational and strategic decisions. Issues covered in this edition include:
Best practices for project execution and deliveryCLIVE MINCHIN
A select set of project management best practices to keep your project on-track, on-cost and aligned to scope. Many firms have don't have the necessary skills, diligence, methods and oversight of their projects; this leads to slippage, higher costs and longer timeframes. Often firms have a history of projects that simply failed to move the needle. These best practices will help your firm avoid these pitfalls but they require fortitude to apply.
3. TABLE OF CONTENTS
Acknowledgement………………………………..…………………………….2
Introduction & History....................................................................................... 3
Bajaj Auto Equity Profile ................................................................................... 7
Acquisitions and Mergers................................................................................... 8
Financial Function ............................................................................................ 10
Working Capital ................................................................................................ 12
Long Term Capital............................................................................................ 14
Relative valuation of the market price (per share) ....................................... 16
CAPM ................................................................................................................. 17
Significance of Beta ........................................................................................ 18
WACC……...………………………………………………………………….19
DDM ................................................................................................................... 21
Conclusion…………………………………………………………………….23
Exhibits…………………………………………………..................................24
Appendix……………………………………………………………………....33
Bibliography ...................................................................................................... 36
3
4. Acknowledgement
Every project requires a great deal of creativity and co-operation on the part of the group
members in order to achieve the desired objectives. This Financial Management project gave
us an opportunity to work as a team and also helped us to gain insights into various financial
tools and techniques that are used by managers which help them to make effective and
efficient decisions. It also helped us to put into practice the concept learnt in class and in
learning their applicability.
We would like to take this opportunity to thank Prof. D Satish, for providing us with his
valuable advice and guidance at every step of this project.
We would also like to thank our classmates and seniors for their co-operation and support.
4
5. Introduction & History
Company History
Bajaj Auto Limited is India's largest manufacturer of scooters and motorcycles. The company
generally has lagged behind its Japanese rivals in technology, but has invested heavily to
catch up. Its strong suit is high-volume production; it is the lowest-cost scooter maker in the
world. Although publicly owned, the company has been controlled by the Bajaj family since
its founding.
Origins
The Bajaj Group was formed in the first days of India's independence from Britain. Its
founder, Jamnalal Bajaj, had been a follower of Mahatma Gandhi, who reportedly referred to
him as a fifth son. 'Whenever I spoke of wealthy men becoming the trustees of their wealth
for the common good I always had this merchant prince principally in mind,' said the
Mahatma after Jamnalal's death.
Jamnalal Bajaj was succeeded by his eldest son, 27-year-old Kamalnayan, in 1942.
Kamalnayan, however, was preoccupied with India's struggle for independence. After this
was achieved, in 1947, Kamalnayan consolidated and diversified the group, branching into
cement, ayurvedic medicines, electrical equipment, and appliances, as well as scooters.
The precursor to Bajaj Auto had been formed on November 29, 1945 as M/s Bachraj Trading
Ltd. It began selling imported two- and three-wheeled vehicles in 1948 and obtained a
manufacturing license from the government 11 years later. The next year, 1960, Bajaj Auto
became a public limited company.
Rahul Bajaj reportedly adored the famous Vespa scooters made by Piaggio of Italy. In 1960,
at the age of 22, he became the Indian licensee for the make; Bajaj Auto began producing its
first two-wheelers the next year.
Rahul Bajaj became the group's chief executive officer in 1968 after first picking up an MBA
at Harvard. He lived next to the factory in Pune, an industrial city three hours' drive from
Bombay. The company had an annual turnover of Rs 72 million at the time. By 1970, the
company had produced 100,000 vehicles. The oil crisis soon drove cars off the roads in favor
of two-wheelers, much cheaper to buy and many times more fuel-efficient.
A number of new models were introduced in the 1970s, including the three-wheeler goods
carrier and Bajaj Chetak early in the decade and the Bajaj Super and three-wheeled, rear
engine Autorickshaw in 1976 and 1977. Bajaj Auto produced 100,000 vehicles in the 1976-
77 fiscal year alone.
The technical collaboration agreement with Piaggio of Italy expired in 1977. Afterward,
Piaggio, maker of the Vespa brand of scooters, filed patent infringement suits to block Bajaj
scooter sales in the United States, United Kingdom, West Germany, and Hong Kong. Bajaj's
scooter exports plummeted from Rs 133.2 million in 1980-81 to Rs 52 million ($5.4 million)
in 1981-82, although total revenues rose five percent to Rs 1.16 billion. Pretax profits were
cut in half, to Rs 63 million.
5
6. New Competition in the 1980s
Japanese and Italian scooter companies began entering the Indian market in the early 1980s.
Although some boasted superior technology and flashier brands, Bajaj Auto had built up
several advantages in the previous decades. Its customers liked the durability of the product
and the ready availability of maintenance; the company's distributors permeated the country.
The Bajaj M-50 debuted in 1981. The new fuel-efficient, 50cc motorcycle was immediately
successful, and the company aimed to be able to make 60,000 of them a year by 1985.
Capacity was the most important constraint for the Indian motorcycle industry. Although the
country's total production rose from 262,000 vehicles in 1976 to 600,000 in 1982, companies
like rival Lohia Machines had difficulty meeting demand. Bajaj Auto's advance orders for
one of its new mini-motorcycles amounted to $57 million. Work on a new plant at Waluj,
Aurangabad commenced in January 1984.
The 1986-87 fiscal year saw the introduction of the Bajaj M-80 and the Kawasaki Bajaj
KB100 motorcycles. The company was making 500,000 vehicles a year at this point.
Although Rahul Bajaj credited much of his company's success with its focus on one type of
product, he did attempt to diversify into tractor-trailers. In 1987 his attempt to buy control of
Ahsok Leyland failed.
The Bajaj Sunny was launched in 1990; the Kawasaki Bajaj 4S Champion followed a year
later. About this time, the Indian government was initiating a program of market
liberalization, doing away with the old 'license raj' system, which limited the amount of
investment any one company could make in a particular industry.
A possible joint venture with Piaggio was discussed in 1993 but aborted. Rahul Bajaj told the
Financial Times that his company was too large to be considered a potential collaborator by
Japanese firms. It was hoping to increase its exports, which then amounted to just five
percent of sales. The company began by shipping a few thousand vehicles a year to
neighboring Sri Lanka and Bangladesh, but soon was reaching markets in Europe, Latin
America, Africa, and West Asia. Its domestic market share, barely less than 50 percent, was
slowly slipping.
By 1994, Bajaj also was contemplating high-volume, low-cost car manufacture. Several of
Bajaj's rivals were looking at this market as well, which was being rapidly liberalized by the
Indian government.
Bajaj Auto produced one million vehicles in the 1994-95 fiscal year. The company was the
world's fourth largest manufacturer of two-wheelers, behind Japan's Honda, Suzuki, and
Kawasaki. New models included the Bajaj Classic and the Bajaj Super Excel. Bajaj also
signed development agreements with two Japanese engineering firms, Kubota and Tokyo R
& D. Bajaj's most popular models cost about Rs 20,000. 'You just can't beat a Bajaj,' stated
the company's marketing slogan.
The Kawasaki Bajaj Boxer and the RE diesel Autorickshaw were introduced in 1997. The
next year saw the debut of the Kawasaki Bajaj Caliber, the Spirit, and the Legend, India's first
four-stroke scooter. The Caliber sold 100,000 units in its first 12 months. Bajaj was planning
6
7. to build its third plant at a cost of Rs 4 billion ($111.6 million) to produce two new models,
one to be developed in collaboration with Cagiva of Italy.
New Tools in the 1990s
Still, intense competition was beginning to hurt sales at home and abroad during the calendar
year 1997. Bajaj's low-tech, low-cost cycles were not faring as well as its rivals' higher-end
offerings, particularly in high-powered motorcycles, since poorer consumers were
withstanding the worst of the recession. The company invested in its new Pune plant in order
to introduce new models more quickly. The company spent Rs 7.5 billion ($185 million) on
advanced, computer-controlled machine tools. It would need new models to comply with the
more stringent emissions standards slated for 2000. Bajaj began installing Rs 800 catalytic
converters to its two-stroke scooter models beginning in 1999.
Although its domestic market share continued to slip, falling to 40.5 percent, Bajaj Auto's
profits increased slightly at the end of the 1997-98 fiscal year. In fact, Rahul Bajaj was able
to boast, 'My competitors are doing well, but my net profit is still more than the next four
biggest companies combined.' Hero Honda was perhaps Bajaj's most serious local threat; in
fact, in the fall of 1998, Honda Motor of Japan announced that it was withdrawing from this
joint venture.
Bajaj Auto had quadrupled its product design staff to 500. It also acquired technology from
its foreign partners, such as Kawasaki (motorcycles), Kubota (diesel engines), and Cagiva
(scooters). 'Honda's annual spend on R & D is more than my turnover,' noted Ruhal Bajaj.
His son, Sangiv Bajaj, was working to improve the company's supply chain management. A
marketing executive was lured from TVS Suzuki to help push the new cycles.
Several new designs and a dozen upgrades of existing scooters came out in 1998 and 1999.
These, and a surge in consumer confidence, propelled Bajaj to sales records, and it began to
regain market share in the fast-growing motorcycle segment. Sales of three-wheelers fell as
some states, citing traffic and pollution concerns, limited the number of permits issued for
them.
In late 1999, Rahul Bajaj made a bid to acquire ten percent of Piaggio for $65 million. The
Italian firm had exited a relationship with entrepreneur Deepak Singhania and was looking to
reenter the Indian market, possibly through acquisition. Piaggio itself had been mostly bought
out by a German investment bank, Deutsche Morgan Grenfell (DMG), which was looking to
sell some shares after turning the company around. Bajaj attached several conditions to his
purchase of a minority share, including a seat on the board and an exclusive Piaggio
distributorship in India.
In late 2000, Maruti Udyog emerged as another possible acquisition target. The Indian
government was planning to sell its 50 percent stake in the automaker, a joint venture with
Suzuki of Japan. Bajaj had been approached by several foreign car manufacturers in the past,
including Chrysler (subsequently DaimlerChrysler) in the mid-1990s.
Employment fell from about 23,000 in 1995-96 (the year Bajaj suffered a two-month strike at
its Waluj factory) to 17,000 in 1999-2000. The company planned to lay off another 2,000
workers in the short term and another 3,000 in the following three to four years.
7
8. Principal Subsidiaries: Bajaj Auto Finance Ltd.; Bajaj Auto Holdings Ltd.; Bajaj Electricals
Ltd.; Bajaj Hindustan Ltd.; Maharashtra Scooters Ltd.; Mukand Ltd.
Principal Competitors: Honda Motor Co., Ltd.; Suzuki Motor Corporation; Piaggio SpA.
Statistics:
Public Company
Incorporated: 1945 as M/s Bachraj Trading Ltd.
Employees: 17,200
Sales: Rs 42.16 billion ($903.36 million)(2000)
Stock Exchanges: Pune Mumbai Delhi London Berlin Frankfurt Munich
Ticker Symbols: BAJAJAUTO 490 BJATq.L 893361.BE 893361.F 893361.MU
NAIC: 336991 Motorcycle, Bicycle, and Parts Manufacturing.
Key Dates:
1945: Bajaj Auto is founded.
1960: Rahul Bajaj becomes the Indian licensee for Vespa scooters.
1977: Technical collaboration with Piaggio ends.
1984: Work begins on a second plant.
1998: Bajaj plans to build its third plant to meet demand.
2000: Thousands of workers are laid off to cut costs.
Address:
Akurdi, Pune 411035
India
Telephone: +91 20 740 2851
Fax: +91 20 740 7397
http://www.bajajauto.com
Source: http://www.fundinguniverse.com/company-histories/Bajaj-Auto-Limited-Company-
History.html
8
9. Equity Profile for the Year 2008-09
The details of equity distribution for the fiscal year 2008-09 are as follows:
1. Shares held by Non-Executive Directors
NAME OF DIRECTOR NUMBER OF SHARES HELD AS ON 31st
MARCH 2009
Shekhar Bajaj 693,440
Niraj Bajaj 1,114,238
Manish Kejriwal 100
D S Mehta 8,490
2. Distribution of share holding across categories
Categories 31 March 2009 3rd April 2008
No. Of % to total No. Of % to total
shares capital shares capital
Promoters 71,786,036 49.61 72,747,805 50.28
Friends and associates 16,327,478 11.28 16,454,136 11.37
of
Promoters
GDRs 181,775 0.13 768,698 0.53
Foreign Institutional 19,980,919 13.81 20,266,586 14.01
Investors
Public Financial 8,316,122 5.75 8,707,469 6.02
Institutions
Mutual Funds 4,926,547 3.41 1,123,175 0.78
Nationalised & other 110,397 0.08 251,704 0.17
banks
NRIs & OCBs 650,056 0.45 613,745 0.42
Others 22,404,180 15.48 23,750,192 16.42
Total 144,683,510 100.00 144,683,510 100.00
Source: Bajaj Auto Ltd. Annual Report for the fiscal year 2008-09 (Yahoo Finance-
www.yahoofinance.com)
9
10. Mergers and Acquisitions
Bajaj Holdings & Invst. Ltd.
Deals where company is target
Date Deal Type Acquirer Company Price/Cost Event Date Event Name
Swap
ratio
12-Jan-00 Sale of To Joint Venture With Kawasaki 0 00 Saturday Takeover Plans Dropped
asset (P) 0000
12-Jan-00 First media announcement
09-Apr-00 Takeover Buy-Back Of Shares 72829.2 09-Mar-00 Buy Back
09-Mar-00 First media announcement
28-Mar-00 Board meeting
29-Jul-00 AGM Date
27-Oct-00 Deal Completed
07-Mar-06 Takeover Life Insurance Corpn. Of India 60705.25 07-Mar-06 First media announcement
07-Mar-06 Preferential Allotment
17-May-07 Sale of Bajaj Auto Ltd. 150000 17-May-07 Board of Directors approval
asset
18-Aug-07 High Court Directed Shareholders Meeting
18-Aug-07 High Court Directed Unsecured creditors
Meeting
18-Aug-07 Shareholder's approval
19-Feb-08 High Court Approval Date
20-Feb-08 Merger Date w.e.f
03-Apr-08 Date of Allotment
17-May-07 Sale of Bajaj Finserv Ltd. 80000 17-May-07 Board of Directors approval
asset
18-Aug-07 High Court Directed Shareholders Meeting
18-Aug-07 High Court Directed Unsecured creditors
Meeting
18-Aug-07 Shareholder's approval
19-Feb-08 High Court Approval Date
20-Feb-08 Merger Date w.e.f
Deals where company is Acquirer
Date Deal Type Target company Price/Cost Event Date Event Name
Swap
ratio
09-Mar-99 Takeover I C I C I Ltd. [Merged] 443.84 09-Mar-99 First media announcement
12-May-99 Deal Completed
29-Jun-99 Takeover Force Motors Ltd. 0 29-Jun-99 First media announcement
08-Jun-00 Takeover I C I C I Ltd. [Merged] 0 08-Jun-00 First media announcement
15-Jul-00 Takeover Force Motors Ltd. 0 15-Jul-00 First media announcement
10
11. 19-Jan-01 Takeover Mukand Engineers Ltd. 0 19-Jan-01 Stock Exchange Announcement
28-Mar-03 Takeover Bajaj Auto Finance Ltd. 1401.62 28-Mar-03 Stock Exchange Announcement
31-Mar-03 Inter-se Tranfer
20-Dec-04 Takeover Maharashtra Scooters Ltd. 4725 20-Dec-04 First media announcement
18-Jan-06 Deal Completed
18-Jan-06 Preferential Allotment
02-Feb-06 Takeover Bajaj Auto Finance Ltd. 5027.04 18-Jan-06 Deal Completed
18-Jan-06 Preferential Allotment
02-Feb-06 First media announcement
02-Feb-06 Stock Exchange Announcement
30-Mar-06 Takeover Mukand Ltd. 1738.73 30-Mar-06 Deal Completed
30-Mar-06 First media announcement
30-Mar-06 Open Market Purchases
08-Jul-06 Takeover I C I C I Bank Ltd. 33986.21 08-Jul-06 Deal Completed
08-Jul-06 First media announcement
08-Jul-06 Open Market Purchases
08-Jul-06 Takeover I C I C I Bank Ltd. 29296.56 08-Jul-06 Deal Completed
08-Jul-06 First media announcement
08-Jul-06 Open Market Purchases
06-Nov-07 Takeover K T M Power Sports A G 30000 06-Nov-07 First media announcement
Source: Prowess.
11
12. Financial Functions of the Organisation
Bajaj Auto is considered to be amongst the most conservative organisations in the Industry
and this reflects in their equity and debt structure. The company has a very efficient finance
department to take care of its investments to assure the welfare and profit maximization of its
shareholders. Headed by Kevin P D’Sa, the finance department has a gamut of
responsibilities, least of which is the book keeping and internal auditing. They are expected to
be robust and take decisions that affect every decision of the firm, from production to
marketing, distribution, sales, services and dividend distribution. In light of the modern
industry scenario, the various duties fulfilled by the finance department include-
(1) To regulate, supervise and implement a timely, full and accurate set of accounting books
of the firm reflecting all its activities in a manner commensurate with the relevant legislation
and regulation in the territories of operation of the firm and subject to internal guidelines set
from time to time by the Board of Directors of the firm.
(2) To implement continuous financial audit and control systems to monitor the performance
of the firm, its flow of funds, the loyalty to the budget, the expenditures, the income, the cost
of sales and other budgetary items.
(3) To timely, regularly and duly prepare and present to the Board of Directors financial
statements and reports as required by all pertinent laws and regulations in the territories of the
operations of the firm and as deemed necessary and demanded from time to time by the
Board of Directors of the Firm.
(4) To meet the terms with all reporting, accounting and audit requirements imposed by the
capital markets or regulatory bodies of capital markets in which the securities of the firm are
traded or are about to be traded or otherwise listed.
(5) To prepare and present for the approval of the Board of Directors an annual budget, other
budgets, financial plans, business plans, feasibility studies, investment memoranda and all
other financial and business documents as may be required from time to time by the Board of
Directors of the firm.
(6) To alert the Board of Directors and to warn it regarding any irregularity, lack of
compliance, lack of loyalty, lacunas and problems whether actual or potential concerning the
financial systems, the financial operations, the financing plans, the accounting, the audits, the
12
13. budgets and any other matter of a financial nature or which could or does have a financial
implication.
(7) To collaborate and coordinate the activities of outside suppliers of financial services hired
or contracted by the firm, including accountants, auditors, financial consultants, underwriters
and brokers, the banking system and other financial venues.
(8) To maintain a working relationship and to develop additional relationships with banks,
financial institutions and capital markets with the aim of securing the funds necessary for the
operations of the firm, the attainment of its development plans and its investments.
(9) To fully computerize all the above activities in a combined hardware-software and
communications system which integrates with the systems of other members of the group of
companies?
(10) Otherwise, to initiate and engage in all manner of activities, whether financial or other,
conducive to the financial health, the growth prospects and the fulfillment of investment
plans of the firm to the best of his ability and with the appropriate dedication of the time and
efforts required.
Source: Financial Management by IM Pandey
13
14. WORKING CAPITAL
It is a measure of both a company's efficiency and its short-term financial health. In case of
Bajaj Auto Ltd. it is related to the working capital requirements . The working capital ratio is
calculated as:
Positive working capital means that the company is able to pay off its short-term
liabilities. Negative working capital means that a company currently is unable to meet its
short-term liabilities with its current assets (cash, accounts receivable and inventory).
Also known as "net working capital", or the "working capital ratio".
Working capital management entails short term decisions - generally, relating to the next one
year period - which is "reversible".
. Working Capital Calculation of Bajaj Auto Ltd.
Particulars Rs. In crores 2008 Rs. In million 2007 Rs. In million 2006
Current Assets, Loans and 2,939.55 3,848.25 1,780.67
Advances
(Less) Current Liabilities 3,734.97 4,517.25 2,019.23
and Provisions
Working Capital ( Current (795.42) (669) (238.56)
Assets- Current
Liabilities)
Calculated Ratios Ratios(decimal) Ratios(decimal) Ratios(decimal)
Current Ratio (CA/CL) 0.7870 0.8519 0.8818
Debt/Equity Ratio 0.8405 0.2937 0.3075
Profit Margin 0.0856 0.1314 0.1455
The current ratio of a company is a measure of their short term solvency (in the next twelve
months or business cycle). Higher the Current ratio better is a company positioned to fulfil its
short term obligations. As evident from the table above, Bajaj Auto is fairly low on the
Current Ratio scale but still not a matter of immediate concern to the management.
The Debt Equity Ratio of a company is a measure of their proportionate use of debt and
equity for financing its assets. A high D/E ratio suggests that the company has financed its
growth mostly via debt. This can be a concern for the management as the company will now
14
15. have to bear additional interest burden of debt servicing and hence, lead to volatile earnings.
As per calculations above, the D/E ratio seems fairly decent.
The Profit Margin ratio of a company is a measure of how well the business is performing in
terms of profit. It measures the percentage of profits on per rupee of sales and is thus a
measure of efficiency of a company. It determines the company’s ability to withstand
competition and adverse conditions like rising costs, falling prices, or declining sales in the
future. As the interest burden is increasing, it could bea possible reason for the falling profit
margin ratio.
Source: www.moneycontrol.com
15
16. Long Term Capital
Bajaj Auto Ltd. collects its long term capital through capital market instruments. Capital
market instruments are nothing but the following:
Capital Market Instruments: Capital market securities include instruments with maturities
greater than one year and those with no designated maturity at all. The market is generally
divided according to whether the instruments contain a promised set of cash flows over time,
or offer participation in the future profitability of a company. The first sector is usually
referred to as the Fixed Income Market, whereas the second is the Equity Market. Preferred
stock is an instrument that has some of the characteristics of each of the other two types.
Equity Shares
Equity shares represent an ownership claim on the earnings and assets of a corporation. After
holders of debt claims are paid, the management of the company can either payout the
remaining earnings to stockholders in the form of dividends or reinvest part or all of the
earnings in the business. . Despite limited liability, because of the residual nature of its claim
to earnings and assets, shares as a class is the riskiest of the securities discussed to this point.
Corporate Bonds
Corporate bonds promise to pay interest at periodic intervals and to return principal at a fixed
date. Generally corporate bonds are rated as to quality by several agencies, the best known of
which are CRISIL, ICRA and CARE.
16
17. The following are the details for Bajaj Auto Ltd.
Mar ' 08 Mar ' 07 Mar ' 06
Sources of funds
Owner's fund
2008 2007 2006
Equity share 144.68 101.18 101.18
capital
Share application - - -
money
Preference share 0 0 0
capital
Reserves & 1,442.91 5,433.14 4,669.55
surplus
Loan funds
Secured loans 6.95 22.46 0.02
Unsecured loans 1,327.39 1,602.97 1,467.13
Total 1,334.34 1,625.43 1,467.15
Source: www.moneycontrol.com
17
18. Relative Valuation of the Market Price (per share)
In this method we try to estimate the value of market price of a company whose value is
unknown. For this purpose we take the values of the companies which are in similar structure
to the company for which we are trying to analysis. In our case, we compare Bajaj Auto Ltd.
With two of its closest competitors, Hero and TVS.
COMPANY NAME HERO TVS AVERAGE
HONDA MOTOR
COMPANY
SALES 15775.77 4363.11
` CRORES
NET INCOME 2231.83 88.01
` CRORES
CURRENT 1736.90 145.10
MARKET
PRICE `
EPS ` 111.34 4.58
BOOK VALUE ` 173.52 36.43
P/E 15.59 31.67 23.6300
P/BV 10.01 3.98 6.9950
BAJAJ AUTO LTD AVERAGE ESTIMATED
STOCK PRICE `
EPS ` 138.01
BOOK VALUE ` 202.40
P/E 20.81 23.6300 3261.1763
P/BV 14.19 6.9950 1415.7880
AVERAGE PRICE ` 2338.4822
Thus estimated market price of BAJAJ AUTO LTD. is Rs 2338.442 per share.
18
19. Capital Asset Pricing Model (CAPM)
Capital Asset Pricing Model is a model that provides a framework to determine the required
rate of return on an asset and risk of the asset.The required rate of return specified by CAPM
helps in valuing an asset.One can also compare expected(estimated) rate of return on an asset
with its required rate of return and determine whether the asset is fairly valued.As we explain
in this section ,under CAPM ,the security market line (FML) exemplifies the relationship
between an asset’s risk and its required rate of return.
Assumptions of CAPM
Market Efficiency
It implies that share prices reflect all the available information.This means that there
are a large number of investors holding a small amount of debt.
Risk Aversion and Mean variance optimization
It evaluates a security’s return and risk,in terms of the expected return and variance or
standard deviation respectively.We prefer the highest rate of return for a given level
of risk.This implies that investors are mean variance optimizers and they form
efficient portfolios.
Homogenous expectations
All investors have the same expectations of their risk and return
Single Time Period
All investors decision are based on single time period
Risk Free Rate
All investors can lend and borrow at a risk free rate of interest.
The Formula for Expected Rate of Return using CAPM is given by:-
Ke = Rf + β (Km – Rf)
Where, Ke = Expected Rate of return,
Rf = Risk Free Rate of Return, such as interest arising from government bonds
Km = Market Rate of Return,
19
20. Significance of Beta
In finance, the beta (β) of a stock or portfolio is a number describing the relation of its returns
with that of the financial market as a whole.
An asset with a beta of 0 means that its price is not at all correlated with the market; that asset
is independent. A positive beta means that the asset generally follows the market. A negative
beta shows that the asset inversely follows the market; the asset generally decreases in value
if the market goes up and vice versa. Here beta value for Bajaj Auto Ltd. is calculated based
on the market price structure, and using the formula which says,
(Cov(m,j))/ ²
Where, Cov(m,j) is the covariance between market price and the share price
² is the variance of the market price.
(β) Calculated is 0.875739489
For detailed calculations, please refer Tables.
Calculation of Return on Equity
From the equation for CAPM Model, we see that Return on Investments is
Return=risk free return + β(market return – risk free return)
=6.42+0.8757(16.4854-6.42)
=15.2347%
20
21. Weighted Average Cost of Capital (WACC)
A firm’s cost of capital is the average required rate of return on the aggregate of investment
projects. It is useful for:
Evaluating investment decisions.
Designing a firm’s debt policy
Appraising the financial performance of top management.
The component cost of capital is as follows:
Cost of Equity
A firm’s capital can be divided into internal and external equity. The internal equity
of a firm is its retained earnings. In the absence of floatation cost , the cost of retained
earnings is equal to the cost of equity .
The cost of equity of Tata Motors has been calculated as per the CAPM model
which is,
equal to 28.80% (refer to page no. )
Cost of Debt
Tata Motors debt structure as on 31st March 2010 is `16625.91 crores.The
following has been our assumption for calculation of cost of debt:
Rate of interest on debt is calculated by taking the average of the last five
years total interest payments and the last five years total debt.
As the maturity period cannot be determined in our case we calculate the cost
of debt by the formula
Kd = ∑I(1-t)/n
Where,
I = interest rate
t = tax rate
Corporate dividend tax rate is 30%
Tax rate = 30%
Therefore, kd = .5033
21
22. Calculation of Weighted Average Cost of Capital(as per Market and Book value)
Component Weights as Weights as Cost of Weights as Weights as
per Market per Book Individual per Market per Book
Value(as per Value(as per capital (in %) Value * cost Value * cost
balance sheet balance sheet of individual of individual
,march 2010) ,march 2010)
capital capital
EQUITY .9097 .0339 15.4254 14.0325 .5229
CAPITAL
RETAINED .0610 .6524 15.4254 .9409 10.0635
EARNINGS
DEBT .0293 .3137 .5033 .0147 .1579
WACC 14.9881 10.7443
22
23. DIVIDEND DISCOUNT MODEL(DDM)
People hold common stocks in their portfolios for two reasons
1)A respective group of common stocks bought at a reasonable price level can be counted to
provide a higher total return than bonds.
2)Common stocks can be held at a protective measure during inflation because unlike equity ,
a bond’s value declines as inflation rises. There should be a standard value for judging
whether a stock is underpriced or overpriced in the market place. We call this standard value
the intrinsic value.
Intrinsic value is the value of a stock which is justified by the asset , earnings ,dividends,
definite prospects and the factor of the management of the issuing company. The major
components of intrinsic values are
1)The earning power and profitability of the management in the employment of assets.
2)Dividends paid and the ability to pay such dividends in the future.
3)Estimates of the growth of earnings.
4)Stability and predictability of these quantitative and qualitative projections.
Thus,in essence the intrinsic value of a firm’s shares is its economic value as a going concern,
taking account of its characteristics , the nature of its business and the investment
environment.
According to the dividend capitalization approach which is a conceptually sound
approach,the value of an equity share is the discounted present value of the dividends
received plus the present value of the resale price expected when the equity share is sold.
Therefore, to apply this approach for valuation of equity stock the following assumptions are
to be made is to
1) Dividends are paid annually which is a common practice for business firms in India.
2) The first payment of dividend is to be made 1 year after the equity share is bought.
23
25. CONCLUSION
1.) The company sold 2, 20,429 two-wheelers in December 2009 compared to 1, 19,215 units
sold in the same month of the previous year, registering a growth of 85%.
2.) The company hopes to reach a sales target of one million in the year 2010-11 with the
launch of its new Pulsar 135 LS. It is the world’s first four valve DTS i-engine bike and the
only light sports bike in the country.
3.) The company is planning to set up an assembly plant in a free trade zone in Manaus in
Brazil next financial year.
4.) To address the tight competition in the two wheeler market, the company is introducing
new models time-to-time.
5.) The company had introduced DTSi engine for better fuel efficiency and lower emissions.
6.) The company as always has been the favourite pick for investors among the auto sector
stocks. Company has been on aggressive mode to tame the competition created by its
competitors. It has been launching various new entrants in the markets recently. Considering
an expected improvement in two-wheeler industry in fourth quarter of the current fiscal on
increased liquidity, Bajaj Auto is certainly a very good option one can go for.
25
26. EXHIBITS
Exhibit I: Balance Sheet: Bajaj Autos
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths
Sources Of Funds
Total Share 101.18 101.18 144.68 144.68 144.68
Capital
Equity Share 101.18 101.18 144.68 144.68 144.68
Capital
Share 0 0 0 0 0
Application
Money
Preference 0 0 0 0 0
Share Capital
Reserves 4,669.55 5,433.14 1,442.91 1,725.01 2,783.66
Revaluation 0 0 0 0 0
Reserves
Networth 4,770.73 5,534.32 1,587.59 1,869.69 2,928.34
Secured 0.02 22.46 6.95 0 12.98
Loans
Unsecured 1,467.13 1,602.97 1,327.39 1,570.00 1,325.60
Loans
Total Debt 1,467.15 1,625.43 1,334.34 1,570.00 1,338.58
Total 6,237.88 7,159.75 2,921.93 3,439.69 4,266.92
Liabilities
Total Share 101.18 101.18 144.68 144.68 144.68
Capital
Equity Share 101.18 101.18 144.68 144.68 144.68
Capital
Share 0 0 0 0 0
Application
Money
Preference 0 0 0 0 0
Share Capital
Reserves 4,669.55 5,433.14 1,442.91 1,725.01 2,783.66
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths
Application Of Funds
Gross Block 2,894.22 3,178.54 2,994.68 3,350.20 3,379.25
Less: Accum. 1,761.22 1,904.94 1,726.07 1,807.91 1,899.66
Depreciation
26
27. Net Block 1,133.00 1,273.60 1,268.61 1,542.29 1,479.59
Capital Work 43.33 107.62 34.74 106.48 120.84
in Progress
Investments 5,856.97 6,447.53 1,857.14 1,808.52 4,021.52
Inventories 272.93 309.7 349.61 338.84 446.21
Sundry 301.55 529.83 275.31 358.65 272.84
Debtors
Cash and 80.84 62.16 54.74 135.68 100.2
Bank Balance
Total 655.32 901.69 679.66 833.17 819.25
Current
Assets
Loans and 2,282.98 2,925.24 1,099.68 1,567.09 2,291.29
Advances
Fixed 1.25 21.32 1.33 1.19 1.21
Deposits
Total CA, 2,939.55 3,848.25 1,780.67 2,401.45 3,111.75
Loans &
Advances
Deffered 0 0 0 0 0
Credit
Current 1,419.08 1,683.46 1,185.19 1,378.20 2,218.06
Liabilities
Provisions 2,315.89 2,833.79 834.04 1,224.15 2,248.72
Total CL & 3,734.97 4,517.25 2,019.23 2,602.35 4,466.78
Provisions
Net Current -795.42 -669 -238.56 -200.9 -1355.03
Assets
Miscellaneous 0 0 0 183.3 0
Expenses
6,237.88 7,159.75 2,921.93 3,439.69 4,266.92
Total
Assets
Contingent 719.06 811.66 1,129.29 924.96 818.25
Liabilities
Book Value 471.49 546.96 109.73 129.23 202.4
(Rs)
27
28. Exhibit II : Profit and Loss account of Bajaj Auto
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths
Income
Sales 8,653.83 10,741.91 9,856.66 9,310.24 12,420.95
Turnover
Excise Duty 1,081.70 1,321.67 1,029.51 610.07 607.7
Net Sales 7,572.13 9,420.24 8,827.15 8,700.17 11,813.25
Other Income 458.96 567.16 170.27 -4.52 38.76
Stock 49.01 -0.9 67.85 -24.49 47.6
Adjustments
Total Income 8,080.10 9,986.50 9,065.27 8,671.16 11,899.61
Expenditure
Raw Materials 5,446.62 6,969.50 6,760.04 6,502.10 8,187.11
Power & Fuel 59.09 79.34 69.2 60.89 70.35
Cost
Employee 282.45 310.07 350.09 366.67 411.76
Cost
Other 79.5 74.53 53.72 58.1 73.8
Manufacturing
Expenses
Selling and 299.99 457.17 390.15 383.41 423.87
Admin
Expenses
Miscellaneous 198.52 230.89 209.63 226.22 221.94
Expenses
Preoperative -24.81 -32.05 -23.04 -14.42 -15.67
Exp
Capitalised
Total 6,341.36 8,089.45 7,809.79 7,582.97 9,373.16
Expenses
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths
Operating 1,279.78 1,329.89 1,085.21 1,092.71 2,487.69
Profit
PBDIT 1,738.74 1,897.05 1,255.48 1,088.19 2,526.45
Interest 0.34 5.34 5.16 21.01 5.98
PBDT 1,738.40 1,891.71 1,250.32 1,067.18 2,520.47
Depreciation 191 190.26 173.96 129.79 136.45
28
34. Annual results in brief :: Hero Honda
Mar ' 06 Mar ' 07 Mar ' 08 Mar ' 09 Mar ' 10
Sales 8719.21 9905.95 10345.01 12325.38 15775.77
Operating profit 1381.98 1201.96 1367.77 1753.02 2661.97
Interest 15.58 13.76 13.47 13.04 -20.62
EPS (Rs) 48.64 42.96 48.47 64.19 111.77
34
35. APPENDIX
FORMULAE USED
Debt-Equity Ratio = Total Debt/Total Equity
Current Ratio = Current Assets/Current Liabilities
Profitability Ratio = (Net Profit / Net Sales)*100
Covariance XY =Standard Deviation X * Standard Deviation Y * Correlation XY
Beta = Covariance(Kj ,Km) / Variance(Km)
CAPM is represented mathematically by
Kj = Rf + Bj( Rm – Rf)
Where,
Kj = Expected or Required Rate Of Return on security j
Rf = Risk-Free Rate Of Return
βj = Beta Coefficient Of Security j
Rm = Return on market portfolio
Dividend Discount Model
Single Period Valuation Model
P0= D1/(Ke-g)
Where,
P0 = Current Market Price Of Share
D1 = Expected Dividend a year hence
Ke = Required Rate Of Return
g= Growth Rate
P/E Ratio = Market Price / EPS
P/B Ratio = Market Price / Book Value
35
36. EPS= (Expected PAT – Preference Dividend) / ( No. Of Outstanding Equity Share)
DPS = Dividend Payout Ratio * EPS
Enterprise Value = (Total Equity + Total Debt) - Cash In Hand and Bank
Cost Of Term Loans
Kt=I ( 1 – T )
Where,
I = Interest Rate
T= Tax Rate
Cost Of Equity Capital
Ke = (D1 / Pe) + g
Where,
D1 = Expected Return Of The Next Year
Pe= Price Per Equity Share
g = Growth Rate
Cost Of Debenture
Kd = [ I(1-T) + {(F-P)/ N} ] / [ (F+P)/2 ]
Where,
Kd = Cost Of Debenture
I = Annual Interest Payment Per Debenture Capital
T = Corporate Tax Rate
F = Redemption Price Per Debenture
P = Net Amount Realized Per Debenture
N = Maturity Period
36
37. Weighted Average Cost of Capital= We*Ke + Wd*Kd + Wp*Kp + Wre* Kre
Where,
We= Proportion of equity in capital structure.
Wd= Proportion of debt in capital structure.
Wp= Proportion of preference shares in capital structure
Wre = Proportion of retained earnings in capital structure
Ke = Cost of equity
Kd = Cost of debt
Kp = Cost of preference share capital
Kre = Cost of retained eartnings
37
38. BIBLIOGRAPHY
www.yahoofinance.com
www.rediffwiz.com
www.moneycontrol.com
www.fundinguniverse.com
Financial Management by IM Pandey
Prowess
38