Copy of RATIO ANAYLSIS Hero and Bajaj

8/8/2019 Copy of RATIO ANAYLSIS Hero and Bajaj

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RATIO ANAYLSIS

Hero Honda & Bajaj Auto.


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Bajaj Auto Ltd.

The group's flagship company, Bajaj Auto, is ranked as the world's fourthlargest two- and three- wheeler manufacturer and Bajaj brand is well-known across several countries in Latin America, Africa, Middle East,South and South East Asia.

Founded in 1926, at the height of India's movement for independencefrom the British, the group has an illustrious history. Jamnalal Bajaj is thefounder of the group.

The present Chairman of the group, Rahul Bajaj, took charge of thebusiness in 1965. Under his leadership, the turnover of the Bajaj Auto theflagship company has gone up from Rs.72 million to Rs.46.16 billion (USD

936 million), its product portfolio has expanded from one to and the brandhas found a global market. He is one of India's most distinguished businessleaders and internationally respected for his business acumen andentrepreneurial spirit.

NILOY


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Hero Honda

Hero Honda Motors Limited, based in Delhi, India, is the world's third largestmanufacturer ofmotorcycles after Yamaha. Hero Honda is a joint venture thatbegan in 1984 [1] between the Hero Group ofIndia and Honda ofJapan. It has beenthe world's biggest manufacturer of2-wheeler motorized vehicles since 2001,when it produced 1.3 million motorbikes in a single year. During the fiscal year2008-09, the company has sold 3.28 million bikes and the net profit of the

company stood at Rs.1281.7 crore, up 32% from the previous fiscal year.[2]

Hero Honda's Splendor is the world's largest selling motorcycle.

Hero is the brand name used by the Munjal brothers in the year 1956 with theflagship company Hero Cycles. It is a joint venture between India's Hero Group andHonda Motor Company; they are related to Jagdish Lal Munjal.

Hero Honda has consistently grown at double digits since inception; and today,every second motorcycle sold in the country is a Hero Honda. Every 30 seconds,

someone in India buys Hero Honda's top-selling motorcycle: Splendor Hero Honda values its relationship with customers. Its unique CRM initiative, Hero

Honda Passport Program, one of the largest programs of this kind in the world, hasover 3 million members on its roster. The program has not only helped Hero Hondaunderstand its customers and deliver value at different price points, but has alsocreated a loyal community of brand ambassadors. NILOY


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HERO HONDA BALANCE SHEET


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HERO HONDA MOTORS LIMITED

BALANCE SHEET AS AT MARCH 31, 2008

(Rupees in crores)

Schedule As at March As at March

No. 31, 2008 31, 2007

SOURCES OF FUNDS

SHAREHOLDERS' FUNDS

Share capital 39.94 39.94

Reserves and surplus 2,946.30 2,430.12

2,986.24 2,470.06

LOAN FUNDS

Unsecured 132.00 165.17

132.00 165.17DEFERRED TAX LIABILITIES 130.59 129.58

TOTAL 3,248.83 2764.81

83 2764.81


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APPLICATION OF FUNDS

FIXED ASSETS

Gross block 1,938.78 1800.63

Less: Depreciation 782.52 635.10Net block 1,156.26 1165.53

Capital work in progress 392.44 189.92

1,548.70 1355.45

PRE - OPERATIVE EXPENSES

(PENDING ALLOCATION) 5 16.05 -

INVESTMENTS 2,566.82 1973.87DEFERRED TAX ASSETS 5.22 1.38

CURRENT ASSETS, LOANS AND ADVANCES

Inventories 317.10 275.58

Sundry debtors 297.44 335.25

Cash and bank balances 131.09 35.78

Other current assets 5.69 3.60

Loans and advances 185.46 263.06

936.78 913.27


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Less: CURRENT LIABILITIES AND PROVISIONS

Current liabilities 1,324.98 1041.92

Provisions 499.76 437.241,824.74 1479.16

Net current assets (887.96) (565.89)

TOTAL 3,248. 2764.81


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BAJAJ AUTO BALANCE SHEET


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RATIO ANALYSIS


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Current ratio = Current Assets

Current Liabilities

Hero Honda:Current Ratio = 751.32 = 0.41

1824.74

Bajaj = 16497.1 = 0.88

18772.9

Bagjun

CURRENT RATIO


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0 35

0 43 0 41

0 2

0 22

0 4

0

0 10 2

0 3

0 4

0 50 6

0 7

0 8

0 9

2006 2007 2008

B j j

e


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Liquid Ratio = Liquid Assets

Current Liabilities

Hero Honda:

434.22 = 0.231824.74

Bajaj

4113.2 = 0.22

18772.9

Bagjun

LIQUID RATIO


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Debt Equity Ratio = Debt

Equity

Hero Honda, Debt Equity Ratio

= 132 = 0.04

2986.24

Bajaj

= 1328.34 = 0.836

1587.59

Shripal

DEBT EQUITY RATIO


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Debt Asset Ratio = Debt

Asset

Hero Honda, Debt Asset Ratio

132.00 = 0.026

5073.57

Bajaj

1328.34 = 0.443

2994.68

Shripal

DEBT ASSET RATIO


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= Net sales

Avg Net Fixed Asset

Hero Honda

10331.80 = 9.481089.39

Bajaj

86632.90 = 2.6042054.8

Jitendra

FIXED ASSET TURNOVER


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Net Sales

Avg total assets

Hero Honda

10331.80 = 3.992589.43

Bajaj

86632.9 =2.53

34242.25

Jitendra

TOTAL ASSET TURNOVER RATIO


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Debtors Turnover Ratio= Net Credit Sales

Average Debtors

= 40.11 ( Hero Honda ) , which is 10 days a cycle of getting the funds

10331.8

257.58

=27.45 ( Bajaj ) , which is 13 days a cycle of getting funds

86632.9

3156.02

Jitendra


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Inventory Turnover Ratio

= COGS ( Net Sales )

Average Inventory

= 36.25 ( Hero Honda ) which is 11 days one cycle of inventory is done

10331.8

296.34

= 28.64 ( Bajaj ) Which is 10 days one cycle of inventory is done

86632.9

3024.9

Jitendra


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P.R.=Shareholders funds /Total assets

P.R. for hero honda on 31st march 07-08

=2986.24/5073.58

=0.588

Bajaj auto ltd

=1587.59/4941.16

= 0.321

Apeksha

Proprietary ratio


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Cash Ratio = Cash and bank + Investments

balances ,

Current Liabilities

Hero Honda131.09+2566.82 = 1.47

1824.74

Bajaj

19132.1 = 1.0218772.9

Apeksha

CASH RATIO


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Hero Honda Bajaj

Current ratio 0.41 0.88

Liquid ratio 0.23 0.21

Cash ratio 1.47

Debt equity ratio 0.04 0.84Debt asset ratio 0.026 0.443

Fixed asset turnover ratio 9.48 16.98

Total asset turnover ratio 2.35

Return on asset 0.22 0.21

Proprietary ratio 0.58 0.321

Comparison of Ratios


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Cash flow hero honda

Profit before tax 1,410.28

Net cashflow-operating activity 1,211.78

Net cash used in investing activity -781.01

Netcash used in fin. activity -432.33

Net inc/dec in cash and equivlnt -1.56

Cash and equivalnt begin of year 16.66

Cash and equivalnt end of year 15.10

Kirti


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Cash flow for bajaj

Profit before tax 958.09

Net cashflow-operating activity 411.49

Net cash used in investing activity -207.66

Netcash used in fin. activity -123.03

Net inc/dec in cash and equivlnt 80.80

Cash and equivalnt begin of year 56.07

Cash and equivalnt end of year 136.87

Kirti


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Stock Performance :

Highest value was of 1550.10

Lowest Value was of 630.15

As on today the stock price is 1400.95

Highlights of Q2, FY'08-09

Total turnover(Net sales & Other Operating income)Rs 3202 crores, growth of 35.6

per cent

Net profit after tax at Rs 306.30 crores, growth of 50 per cent Total sales for Q2 stands at 9,72,095 units, growth of 28.5 per cent

Over 55 per cent share in domestic motorcycle market

Launches first-of-its kind music video to celebrate 25 years of Hero Honda

Hero Honda Has a sales of 1263254 units for the year 2007-08 and the total sales

turnover was 12,048.30 Crores ( 2007-08 ) & a Net profit of 1410.28Crores, so on eachunit the company makes a average profit of Rs11,000/- ( Aprox )


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Stock Market Hero Honda


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Stock Market-Bajaj

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Copy of RATIO ANAYLSIS Hero and Bajaj