FUNDAMENTAL ANALYSIS BETWEEN

BAJAJ AUTOMOBILES & TVS AUTOMOBILES

COMPANY OVERVIEW
BAJAJ AUTO

Founded in 1926 Bajaj Auto came into existence on November 29,1945 as M/s Bachraj Trading Corporation Private Limited . It started off by selling imported twoand three-wheelers in India. In1959, it obtained license from the Government of India to manufacture two- and three-wheelers and it went public as Bajaj Auto Ltd (BAL) in1960 . It started producing at Waluj in Aurangabad. In1986, it managed to produce and sell 500,000 vehicles in a single financial year.

HISTORY

With the demerger of Bajaj Auto Ltd, following separate corporate entities came into existence in May 2008 Bajaj Finserv Ltd (BFL), Bajaj Auto Ltd (BAL), and Bajaj Holdings and Investment Ltd (BHIL)

COMPANY OVERVIEW

TVS AUTOMOBILES

The TVS group was established in 1911 by Shri. T. V. Sundaram Iyengar. The company entered into a technical know-how and assistance agreement with Suzuki Motor Co Ltd of Japan in the year 1982. The group has 30 companies and employs more than 40,000 people. It is Indias third largest two-wheeler manufacturer and one among the top ten in the world. It has 4 manufacturing plants in country. It has 15 percent market share in the two-wheeler industry in India More than 15 million customer.

HISTORY

The company entered into a technical know-how and assistance agreement with Suzuki Motor Co Ltd of Japan in the year 1982. The TVS group and Suzuki Motor Corporation parted ways from their 15-year-old joint venture on September 27, 2001.

BALANCE SHEET

CURRENT RATIO
A good measure of liquidity of a company, or how easily it can cough up cash. AKA - Indicator of company's ability to pay short-term obligations; calculated by dividing current assets by current liabilities. BAJAJ CURRENT RATIO = .80 TVS CURRENT RATIO = 1.13

QUICK RATIO
Like current ratio, this gives a measure of a companys financial strength:

It is a measure of how quickly a company's assets can be turned in cash. BAJAJ QUICK RATIO = 0.71 TVS QUICK RATIO = 0.75

DEBT/EQUITY RATIO
A relative measure of how much debt a company has:

A higher debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings. BAJAJ DEBT/EQUITY RATIO = 0.07 TVS DEBT/EQUITY RATIO = 1.16

EARNINGS PER SHARE (EPS)

It is calculated by the following formula:

Basically, this will tell you if and how profitable the company is. BAJAJ EPS = 115.42 TVS EPS = 3.71

Price/Earnings Ratio (P/E)

P/E is referred to as the "multiple," because it shows how much investors are willing to pay per dollar of earnings. It is calculated by the following formula:

BAJAJ P/E =12.16 TVS P/E = 37.5

Return on Assets (ROA)

Return on Investment or ROI, this is a measure what earnings were generated from capital investment back into the company. It is calculate by the following formula:

BAJAJ ROA = 70.29% TVS ROA = 9.70%

Return on Equity (ROE)

It is a measure of how much in earnings a company generates in four quarters compared to its shareholders' equity and is a good measure of profitability.

BAJAJ ROE = 85.21%

TVS ROE = 5.70%

Price/Earnings to Growth (PEG)

It is : BAJAJ PEG = -6.11 TVS PEG = .5572

Net Profit Margin

Net income as a percentage of sales. You get this by dividing net income by sales. Since it's a percentage, it tells you how many cents on each dollar of sales is pure profit. The higher a companys profit margin compared to its competitors, the better. BAJAJ NET PROFIT MARGIN = 19.80%