Bajaj Auto Limited (BAJAJ-AUTO.NS) stock analysis
In our weekly check, Bajaj Auto Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3.
About Bajaj Auto Limited
Bajaj Auto Limited is a Consumer Cyclical company (Auto - Manufacturers) based in India, listed on NSE as BAJAJ-AUTO.NS.
What our checks show for BAJAJ-AUTO.NS
Red flags
- Operating cash flow is only 0.24x net profit: part of the reported profit does not arrive as cash.
- The stock has fallen as much as 81% from a peak. Would you have held through that?
- Return on capital (ROCE) is zero or negative: the business does not earn on the money put into it.
Warning signs
- The net margin fell by 1.2 points over 5 years, to 16.8%: the company keeps less of each sale as profit.
- Analysts expect the net margin to shrink by 0.1 points from today's 16.8%.
- Free cash flow is only 3.2% of revenue.
- Free cash flow covers the dividend only 0.4 times.
- Thinly traded (about 264 thousand shares a day): buying and selling can move the price.
Strengths
- Debt is low: 0x equity.
- Operating profit covers interest 10.4 times over.
- The gross margin is 29.9% and has risen by 1.3 points: pricing power is holding.
- Revenue grew 23.4% a year over the last 3 years.
- Earnings per share grew 25.6% a year over the last 3 years.
- Net profit grew 24.7% a year over the last 3 years.
Next earnings report: 2026-10-27
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Questions
What grade does Bajaj Auto Limited (BAJAJ-AUTO.NS) have?
In our weekly check, Bajaj Auto Limited is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 17 pass, warnings: 5, red flags: 3. The grade is a risk check, not a buy or sell recommendation.
What are the main risks of BAJAJ-AUTO.NS stock?
This week's biggest flags for Bajaj Auto Limited: Profits not backed by cash, Deep past fall, Low return on capital. In total 8 of 25 checks show a warning or a red flag.
What does Bajaj Auto Limited do?
Bajaj Auto Limited is a Consumer Cyclical company (Auto - Manufacturers) based in India, listed on NSE as BAJAJ-AUTO.NS.
When does Bajaj Auto Limited report earnings next?
The next earnings report is expected on 2026-10-27. We re-run the checks every week, so the grade can change after it.
The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.
Updated 2026-10-24
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