BAJAJ-AUTO (Bajaj Auto Ltd) vs BSE Sensex 30 Comparison

BAJAJ-AUTO

BSE Sensex 30

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

Select Stock to Compare

BAJAJ-AUTO

BSE Sensex 30

Difference

1Y 3Y 5Y 10Y 15Y 20Y

BAJAJ-AUTO

BSE Sensex 30

Add Stock

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

Select Stock to Compare

BSE Sensex 30

BAJAJ-AUTO

EICHERMOT

TVSMOTOR

HEROMOTOCO

7272

Add Stock

1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

Select Stock to Compare

Back to BAJAJ-AUTO Analysis

Bajaj Auto Ltd
Glance View

Market Cap

2.5T INR

Industry

Automobiles

Economic Moat

Wide

Bajaj Auto Ltd., a pillar in the automotive industry, traces its roots back to the pre-independence era of India, evolving dynamically through decades of economic transitions. Initially part of the diversified Bajaj Group, which dabbled in sectors from home appliances to steel, Bajaj Auto set its course towards defining the very landscape of personal mobility in India. It rose to prominence as the manufacturer of the iconic Chetak scooter, becoming a household name synonymous with two-wheelers in the country. In a keenly competitive market, Bajaj Auto emerged not merely as a player but a trendsetter, laying the groundwork for India's burgeoning two-wheeler industry by focusing on affordability, durability, and accessibility for the masses. Bajaj Auto thrives on its strategic embracing of innovation and adaptability, seamlessly pivoting from scooters to motorcycles as market preferences shifted. This transformation was bolstered by its swift adoption of technologically advanced practices and global partnerships, notably its alliances with brands like KTM and its acquisition of a significant stake in the British motorcycle brand Triumph. These efforts propelled it beyond Indian borders, scaling its reach to over 70 countries, effectively making it the world's third-largest manufacturer of motorcycles and the largest producer of three-wheelers. The company's diversified revenue streams—from commuter motorcycles catering to urban and rural areas, premium offerings to tap into lifestyle trends, and robust three-wheeler segments serving both passenger and cargo needs—demonstrate its adeptness at fostering both domestic dominance and international expansion. Through strategic manufacturing efficiencies and lean cost structures, Bajaj Auto continues to drive financial performance with innovation and global reach acting as its twin engines.

View BAJAJ-AUTO Analysis

BAJAJ-AUTO Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

IN		Eicher Motors Ltd NSE:EICHERMOT	Add
IN		TVS Motor Company Ltd NSE:TVSMOTOR	Add
IN	H	Hero MotoCorp Ltd NSE:HEROMOTOCO	Add
JP		Yamaha Motor Co Ltd TSE:7272	Add
CN		AIMA Technology Group Co Ltd SSE:603529	Add
CN		Yadea Group Holdings Ltd HKEX:1585	Add
US		Harley-Davidson Inc NYSE:HOG	Add
IN	O	Ola Electric Mobility Ltd NSE:OLAELEC	Add
CN		Loncin Motor Co Ltd SSE:603766	Add
CN		CETC Acoustic-Optic-Electronic Technology Inc SSE:600877	Add

IN		Eicher Motors Ltd NSE:EICHERMOT	Select
IN		TVS Motor Company Ltd NSE:TVSMOTOR	Select
IN	H	Hero MotoCorp Ltd NSE:HEROMOTOCO	Select
JP		Yamaha Motor Co Ltd TSE:7272	Select
CN		AIMA Technology Group Co Ltd SSE:603529	Select
CN		Yadea Group Holdings Ltd HKEX:1585	Select
US		Harley-Davidson Inc NYSE:HOG	Select
IN	O	Ola Electric Mobility Ltd NSE:OLAELEC	Select
CN		Loncin Motor Co Ltd SSE:603766	Select
CN		CETC Acoustic-Optic-Electronic Technology Inc SSE:600877	Select

IN		Eicher Motors Ltd NSE:EICHERMOT	Add
IN		TVS Motor Company Ltd NSE:TVSMOTOR	Add
IN	H	Hero MotoCorp Ltd NSE:HEROMOTOCO	Add
JP		Yamaha Motor Co Ltd TSE:7272	Add
CN		AIMA Technology Group Co Ltd SSE:603529	Add
CN		Yadea Group Holdings Ltd HKEX:1585	Add
US		Harley-Davidson Inc NYSE:HOG	Add
IN	O	Ola Electric Mobility Ltd NSE:OLAELEC	Add
CN		Loncin Motor Co Ltd SSE:603766	Add
CN		CETC Acoustic-Optic-Electronic Technology Inc SSE:600877	Add

CA	A	Advance Lithium Corp XTSX:AALI	Add
US	G	GE Vernova LLC NYSE:GEV	Add
NL	N	Nepi Rockcastle NV JSE:NRP	Add
US		Schlumberger NV NYSE:SLB	Add
US	B	Baker Hughes Co NASDAQ:BKR	Add
ID		Amman Mineral Internasional Tbk PT IDX:AMMN	Add
US	R	Reddit Inc NYSE:RDDT	Add
CH	G	Galderma Group AG SIX:GALD	Add
US		Halliburton Co NYSE:HAL	Add
IN		Jio Financial Services Ltd NSE:JIOFIN	Add

	Franklin Covey Co NYSE:FC	37.06 USD 1.84%
	Mohawk Industries Inc NYSE:MHK	117.31 USD 1.2%
	Ardmore Shipping Corp NYSE:ASC	12.34 USD -0.72%
	ASGN Inc NYSE:ASGN	85.05 USD 2.64%
	Skyworks Solutions Inc NASDAQ:SWKS	88.85 USD 0.45%
	Weatherford International PLC NASDAQ:WFRD	73.02 USD 1.01%

BAJAJ-AUTO

vs

BSE Sensex 30

Stocks Performance
BAJAJ-AUTO vs BSE Sensex 30

Performance Gap
BAJAJ-AUTO vs BSE Sensex 30

Performance By Year
BAJAJ-AUTO vs BSE Sensex 30

Competitors Performance
Bajaj Auto Ltd vs Peers

Bajaj Auto Ltd
Glance View

Company

Help

Tools

Stocks

	Johnson & Johnson NYSE:JNJ	144.19 USD 0.12%
	Bank of America Corp NYSE:BAC	44.81 USD 1.17%
	Mastercard Inc NYSE:MA	521.36 USD -0.2%
	Salesforce Inc NYSE:CRM	332.9 USD 0.68%
	Abbvie Inc NYSE:ABBV	181.22 USD 0.99%
	Home Depot Inc NYSE:HD	389.18 USD 0.19%

	Arista Networks Inc NYSE:ANET	115.2 USD 3.05%
	Visa Inc NYSE:V	314.91 USD 0.16%
	Texas Pacific Land Corp NYSE:TPL	1 211.03 USD 2.62%
	KLA Corp NASDAQ:KLAC	657.01 USD 3.2%
	Manhattan Associates Inc NASDAQ:MANH	272.84 USD 1.49%
	Pinduoduo Inc NASDAQ:PDD	96.82 USD -0.07%

	Salesforce Inc NYSE:CRM	332.9 USD 0.68%
	ServiceNow Inc NYSE:NOW	1 073.77 USD 1.84%
	EOG Resources Inc NYSE:EOG	126.57 USD 1.49%
	Copart Inc NASDAQ:CPRT	56.91 USD 1.05%
	Applied Materials Inc NASDAQ:AMAT	170.06 USD 3.78%
	Synopsys Inc NASDAQ:SNPS	493.71 USD 2.27%

	Johnson & Johnson NYSE:JNJ	144.19 USD 0.12%
	Berkshire Hathaway Inc NYSE:BRK.A	681 460 USD 0.88%
	Bank of America Corp NYSE:BAC	44.81 USD 1.17%
	Mastercard Inc NYSE:MA	521.36 USD -0.2%
	UnitedHealth Group Inc NYSE:UNH	513 USD 1.68%
	Exxon Mobil Corp NYSE:XOM	107.86 USD 0.51%

BAJAJ-AUTO vs BSE Sensex 30

Stocks Performance BAJAJ-AUTO vs BSE Sensex 30

Performance Gap BAJAJ-AUTO vs BSE Sensex 30

Performance By Year BAJAJ-AUTO vs BSE Sensex 30

Competitors Performance Bajaj Auto Ltd vs Peers

Bajaj Auto Ltd Glance View

Company

Help

Tools

Stocks

BAJAJ-AUTO

vs

BSE Sensex 30

Stocks Performance
BAJAJ-AUTO vs BSE Sensex 30

Performance Gap
BAJAJ-AUTO vs BSE Sensex 30

Performance By Year
BAJAJ-AUTO vs BSE Sensex 30

Competitors Performance
Bajaj Auto Ltd vs Peers

Bajaj Auto Ltd
Glance View