Abstract

Bajaj Auto Limited, one of the leading two-wheeler companies in India and the oldest, is at a crucial stage in its existence. It is facing increasing competition from foreign players like Suzuki and Honda whose market shares have been increasing over the years. Bajaj is working on cutting costs, increasing efficiency, and coming up with innovative models along with introducing electric vehicles. The case will help the students perform a SWOT analysis and a company analysis and also help them to estimate the intrinsic value of the company using various valuation models.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand how to analyze any company
• Understand the importance of the SWOT analysis and its significance in company valuation
• Evaluate companies using the Five-factor ROE analysis
• Estimate the intrinsic value of the company using different valuation models

Keywords

Company Valuation; Company Analysis; Beta; Dividend Discount Model; EIC Framework; Fundamental Analysis; SWOT Analysis; Five factors ROE Analysis; Market Return; Two-Wheeler Industry