Bajaj Auto Ltd (BAJAJ-AUTO) — share price & stock analysis

Market cap

₹2,75,082 Cr

P/E

25.5×

ROE

29.2%

vs own 10-yr valuation

73rd pctile

Book value / share

₹1,389

EPS (TTM)

₹386

10-yr median P/E

20.4×

Revenue (FY26)

₹62,905 Cr

Profit after tax (FY26)

₹10,574 Cr

Weinstein stage

Stage 2 (41 weeks)

Data as of

1 July 2026

3 of the 5 things we track are currently moving the right way — most of the dashboard is turning up.

Where the levels actually stand: ROCE 28% — a high-quality engine; debt moderate (0.58× equity); margins near the top of their band. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double, and a quarter of the score comes from our earnings-recovery lens (is the profit cycle turning up off its trough?).

The price has run ahead of the profits

Since Mar 2016, the stock is up 307% while earnings per share grew 175%. The difference is re-rating — investors paying more for the same rupee of profit.pricettm_eps

That works until it doesn’t: from here, earnings have to do the lifting, because the multiple has already done its part.

Today’s P/E of 25.5× means the market is paying up — this is the expensive end of its own 10-year history (73rd percentile).pe_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots; between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/E — what the market pays per rupee of profit; the dotted line is its long-run median (20.4×).

The price is in a confirmed uptrend — 41 weeks and counting

Stock prices move through four repeating stages: basing (1), advancing (2), topping (3) and declining (4). This one is in Stage 2: advancing, 41 weeks in, confirmed.stage

The price sits above its rising 200-day average (₹9,531 today) — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Beating NIFTY 500 for 33 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

Profits are at an all-time high

Over 12 years, sales went from ₹20,137 Cr to ₹62,905 Cr (about 10% a year), and profit from ₹3,380 Cr to ₹10,574 Cr.revenuenet_profit

Margins took a round trip — down to 15.9% in FY22, back to 20.8% now. The profit growth survived the squeeze.operating_profit

Sales exploded 41% last quarter — growth every single quarter for over 2 years

Mar 26 sales were ₹17,832 Cr, up 41% on the same quarter last year.revenue

That makes 10 quarters of growth in a row — this is a trend, not a blip.revenue

Margins have been rebuilt — 15.9% in FY22 to 20.8% now

Of every ₹100 of sales, the company keeps ₹17.3 as operating profit (a year ago it kept ₹18.6).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at 15.9% in FY22 and has been rebuilt to 20.8% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

The gross margin moved the same way (33% → 31%), so this is about input costs and pricing power — the raw-material equation worsened.gpm_pctopm_pct

Profit exploded 94% — mostly from income from outside the core business

Mar 26 profit after tax was ₹3,492 Cr, up 94% year on year.net_profit

A caution: a meaningful slice of this jump came from income outside the core business — that is lower-quality profit and may not repeat.other_income

Profits on paper, cash lagging behind

Over the last 5 profitable years, the business reported ₹37,833 Cr of profit and collected ₹17,223 Cr of operating cash — about 46% conversion.operating_cash_flownet_profit

The wrinkle is the latest year: FY26 collected ₹2,597 Cr against ₹10,574 Cr of reported profit — about 25%. One year isn’t a trend, but it is the line to watch.operating_cash_flownet_profit

The gap sits in receivables: customers now take 20 days to pay, up from 15. Profit booked, cash pending.debtor_days

The cash cycle is stretching — more money stuck in the pipeline

One rupee now takes about -1 days to go out the door as materials and come back as collected cash — up from -29 days the year before.cash_conversion_cycle

The biggest mover: inventory sitting longer in the warehouse (22 → 54 days).inventory_days

The asset base keeps compounding — this company builds

The productive asset base has gone from ₹2,660 Cr (FY14) to ₹11,961 Cr, with another ₹1,521 Cr of capacity under construction right now.fixed_assetscwip

The build is bigger than the cash engine: investing outflows (₹8,143 Cr) exceeded operating cash (₹7,749 Cr) over the last 3 years — the difference comes from debt or shareholders.investing_cash_flowoperating_cash_flow

Debt is present but comfortable

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹58 — total borrowings have grown from ₹59.0 Cr to ₹22,713 Cr over the window.borrowings

Every ₹100 kept in the business earns ₹28 — a high-quality engine

Return on capital employed is 28.0% (a year ago: 28.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

The owners aren’t moving

Promoters hold 55.0%, essentially unchanged. Foreign funds own 8.8%, domestic funds 14.3%.promoters_pctfiis_pctdiis_pct

Institutions buying while the story develops is the market’s quiet vote of confidence — they meet management, you don’t.

Meanwhile foreign funds have been the sellers — from 13.7% to 8.8% over the window. Someone on the other side of the table disagrees; both sides count.fiis_pct

Worth studying deeper — with eyes open

The numbers lean positive, and the price already assumes the good news continues.

Best thing in the data: cash generation rising (₹−1,406 Cr → ₹2,597 Cr).operating_cash_flow

Biggest worry: debt moving the wrong way (0.27× → 0.58×).borrowings

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data