COMPANY HISTORY  

Bajaj Auto, the major Indian Automobile Manufacturer, is the flagship of Bajaj group. It is ranked as world’s fourth largest two-wheeler and three-wheeler manufacturer. Bajaj Auto was started in 1945 under the name of M/s Bachraj trading corporation limited. Initially it started to sell imported two-wheelers and three-wheelers. In 1950’s Automobile Products of India (API) dominated the scooter market with its lambrettas, it was Bajaj which rapidly emerged as an unchallenged leader in the scooter industry with technical help from Vespa of Italy. In 1980’s Indian government changed its License Raj policy and paved way for the foreign players to enter Indian two wheeler market. Bajaj has a technical tie-up with Kawasaki Heavy Industries of Japan to produce a range of latest, state of art Two-wheelers and Three-wheelers in India. Bajaj auto makes five kinds of motorcycles, two kinds of scooters, and eight kinds of three wheelers.Bajaj’s latest motorcycles to be launched in the market are Bajaj XCD125 and Bajaj Pulsar 220 DTS F-i. Also Bajaj launched a new model of scooter Bajaj Kristal DTS-i. 

Brands:    

* Motor cycles: Bajaj CT-100, Bajaj Wind 125, Bajaj Discover, Bajaj Pulsar DTS-i, Bajaj Avenger, Bajaj Platina, Bajaj Pulsar 220 DTS F-i, Bajaj XCD125,Kawasaki Bajaj Caliber DTS-i    

* Scooters: Bajaj Chetak, Bajaj Wave, Bajaj Kristal DTS-i    

* Three Wheelers: Goods Carriers: FE2S, GE 1000                          Passenger Carriers: RE2S, RE 4S, RE 4S CNG, RE 4S LPG, RE Diesel,   RE Diesel Mega            

Bajaj Auto has three plants in Maharastra, at Akrudi, Waluj and chakan. In April the company commissioned a new plant at Patnagar, Uttarkhand. Since the tie-up in 1986, Bajaj Auto has launched KB100, KB RTZ, KB125, 4S, 4S Champion, Boxer, Caliber, Caliber115, Wind 125 and India s first real cruiser bike, the Kawasaki Bajaj Eliminator. A Fortune 500 company with a turnover of USD 10 billion, Kawasaki Heavy Industries has crafted new technologies for over 100 years. In 1995 Bajaj signed agreements with Kubota of Japan for the development of diesel engines for three wheelers and with Tokyo R&D for gearless scooter and moped development. Recently the company entered joint venture with Renault and Nissan two major car makers to enter in to small car segment. The company will manufacture these low cost cars in its new unit at Chakan in Maharastra. 

FINANCIALS The company announced its financial results for the quarter ended June 30, 2008 recently. The company posted net profit of Rs.1751 Million an increase of 45% over the last quarter profit of Rs.1206.7 Million. Company’s operating profit declined by 5% and stood at Rs.2667.8 Million as against last year’s operating profit of Rs. 2822.5 Million.  This is due to increase in the price of inputs and operating costs. Revenue soared by 1.5% against the last quarter ended March, 31 2008.  The company’s Q1 FY09 results are tabulated below 

 The company’s motorcycle sales increased by 18% especially the 125cc segment moved up by 14%. Now the company is having 48% share of 125 cc bike market. The company’s export level grew by 35-40%. The company’s new launch Bajaj XCD has a strong demand in the two wheelers market. As the company suspended the export of three wheelers to Egypt and due to the foreign currency fluctuations revenues from the export were slightly lowered when compared to the last quarters. It is expected that the sales will grow in the upcoming quarters as the company recently launched two new vehicles on in the passenger segment and another in the goods segment. The company has sold 384,865 two wheelers and 38,489 three wheelers upto May 2008, compared to 335,019 two wheelers and 48,470 three wheelers upto May 2007. As these figures reveal in the current year while two wheeler sales have gone up, three wheeler sales have fallen. The company is continually expanding volumes by cleverly segmenting the market and posing a challenge to other established vehicle makers.                                                                      

STOCK PERFORMANCE 

The stock is now trading in the region of Rs. 480-510. The stock has a strong support level at Rs. 400 and near term resistance level at Rs. 600. The Q1 results made a strong impact in the movement of stock. The stock resumed from Rs.400 level and gained 25% in a short span of two weeks. So the Near term and medium investors may accumulate this stock till it touches Rs.525.