BAJAJ-AUTO vs TVSMOTOR
Side-by-side comparison of Bajaj Auto Ltd. and TVS Motor Company Ltd.. Descriptive only — not investment advice.
Bajaj Auto Ltd.
Auto
Quality Score: 73/100
TVS Motor Company Ltd.
Auto
Quality Score: 54/100
At a glance
| Metric | BAJAJ-AUTO | TVSMOTOR |
|---|---|---|
| Quality Score | 73/100 | 54/100 |
| P/E (trailing) | 27.8 | 60.2 |
| Forward P/E | 22.7 | 39.5 |
| ROE | +28.1% | — |
| Profit margin | +16.5% | +5.5% |
| Debt-to-equity | 56.29 | 346.08 |
| Dividend yield | +1.40% | +0.32% |
| 1Y price return | +38.2% | +31.2% |
| From 52w high | -0.7% | -7.7% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.41 | 2.03 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Bajaj Auto (₹10,711.5) is trading at a 52-week high, up 38.2% over the past year and 11.1% over the past three months, sitting 17.1% above its 200-DMA and 12.2% above its 50-DMA. The company posted 5-year earnings growth of 103.1% and carries a trailing PE of 27.81 against a forward PE of 22.71, with ROE of 28.05% ranking first among its disclosed Auto peers. Recent corporate actions include a ₹150/share dividend declaration and a share buyback announcement in early May 2026.
TVS Motor Company (₹3,651) trades at a trailing PE of 60.2 — the highest among its Auto sector peer group — against a backdrop of 5-year earnings CAGR of 48.7% and revenue CAGR of 31.7%. The balance sheet carries a debt-to-equity ratio of 346.1 with a rising debt trend, and free cash flow has been positive in only 1 of the tracked persistence years. Price is 31.21% higher over the past 12 months and sits above both its 50-DMA (₹3,607) and 200-DMA (₹3,507), with a drawdown of 7.71% from its 52-week high.
Pros
- ✓ROE of 28.05% is the highest among the 6 Auto peers with available ROE data (M&M: 18.75%, MARUTI: 14.43%), and has been above 15% in 4 of the tracked years with a consistency score of 83.
- ✓5-year earnings growth of 103.1% and 5-year revenue growth of 48.8% reflect sustained top-line and bottom-line expansion over the measured period.
- ✓At ₹10,711.5, the stock is only 0.68% below its 52-week high; price is above both the 50-DMA (₹9,550.96) and 200-DMA (₹9,146.2), indicating the price trend has been pointing upward across both intermediate and long-term moving averages.
- ✓April 2026 total sales of 5,13,792 units represented a 40% year-on-year increase, and the company announced a ₹150/share dividend plus a share buyback — two capital return actions within the same week.
- ✓5-year earnings growth of 48.7% and revenue growth of 31.7% rank among the stronger growth profiles in the Auto sector over the same period.
- ✓Price trades above both the 50-DMA (₹3,607) and 200-DMA (₹3,507), with RSI at 53.3 (neutral range), and is up 31.21% over 12 months against a 52-week drawdown of only 7.71%.
- ✓Forward PE of 39.5 represents a meaningful compression from the trailing PE of 60.2, consistent with analyst consensus projecting continued earnings expansion across 36 analysts (mean rating 2.03 on a 1–5 scale, lower = more constructive).
- ✓Recent strategic actions include formalizing a partnership with Hyundai Motor for electric three-wheeler commercialization in India and a multi-product launch expansion into Zambia, extending the addressable market footprint.
Cons
- ✗RSI of 73.83 places the stock in overbought territory; price is 12.2% above the 50-DMA and 17.1% above the 200-DMA, representing a significant extension from both near-term and medium-term trend averages.
- ✗Reported debt-to-equity of 56.29 is anomalously high relative to the sector and warrants scrutiny against standalone financials; if confirmed at the consolidated level, it would represent a material departure from FMCG and auto-sector norms.
- ✗FCF-positive data covers only 3 years in the persistence block, which is insufficient to establish a long-cycle track record of free cash generation.
- ✗Quality score of 55 ranks 2nd of 6 among peers, but the absolute score is mid-range; sector peer data gaps (missing ROE and 1Y price change for multiple peers) reduce confidence in the relative quality ranking.
- ✗Debt-to-equity of 346.1 is the highest structural leverage figure in the peer group; the debt trend is rising, and this level of balance-sheet leverage is atypical for an auto OEM operating outside the financial-services segment.
- ✗Free cash flow has been positive in only 1 of the tracked persistence years, indicating that reported earnings have not consistently converted to surplus cash; this limits internal funding capacity relative to the growth rate being pursued.
- ✗Quality score of 32 ranks 5th of 6 in the Auto sector peer group; peers Bajaj Auto (55), Eicher Motors (60), and M&M (52) score materially higher, pointing to a composite quality gap in profitability, consistency, and balance-sheet health.
- ✗Profit margin of 5.52% is thin for the valuation multiple carried; any revenue shortfall or cost pressure has an amplified impact on earnings given the limited margin of safety.
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