TVS vs Bajaj Auto Which Is More Reliable?

TVS Motor Company and Bajaj Auto are two leading players in the Indian two-wheeler market. Both companies are known for their wide range of affordable and high-quality motorcycles and scooters. While TVS has a strong presence in the domestic market, Bajaj has established itself as a global player with a strong export market. Investors often compare the two stocks based on their financial performance, market share, product portfolio, and innovation in the industry. Let's delve deeper into the comparison of TVS vs Bajaj Auto stocks to understand which one offers better investment opportunities.

TVS or Bajaj Auto?

When comparing TVS and Bajaj Auto, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between TVS and Bajaj Auto.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. TVS has a dividend yield of 0.81%, while Bajaj Auto has a dividend yield of 0.89%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. TVS reports a 5-year dividend growth of 31.51% year and a payout ratio of 0.00%. On the other hand, Bajaj Auto reports a 5-year dividend growth of 18.47% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with TVS P/E ratio at 24.73 and Bajaj Auto's P/E ratio at 33.90. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. TVS P/B ratio is 7.11 while Bajaj Auto's P/B ratio is 8.07.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, TVS has seen a 5-year revenue growth of 0.87%, while Bajaj Auto's is 0.59%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with TVS's ROE at 33.38% and Bajaj Auto's ROE at 24.94%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹11590.30 for TVS and ₹8944.00 for Bajaj Auto. Over the past year, TVS's prices ranged from ₹7188.00 to ₹15137.45, with a yearly change of 110.59%. Bajaj Auto's prices fluctuated between ₹6232.00 and ₹12774.00, with a yearly change of 104.97%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.