Business Valuation Assignment PDF

BUSINESS VALUATION
Fourth Trimester
CIA 1
Topic - : Identifying the drivers of DCF valuation and Industry analysis of Bajaj Auto
Submitted By:
2027708 - Nilotpal Karan
2027744 - Diksha D Kamat
2027721 - Nandhunath VG
Under the Guidance of:
Prof. Latha Ramesh
SCHOOL OF BUSINESS MANAGEMENT
CHRIST (DEEMED TO BE UNIVERSITY)
BENGALURU
YEAR 2020-22

Declaration
We, hereby declare that the Business Valuation Report entitled “Industry and Company
Analysis” has been undertaken by us for the award of Master of Business Administration. We
have completed this study under the guidance of Prof. Latha Ramesh, Associate Professor,
Department of Finance, School of Business and Management, Christ (Deemed to be university),
Bangalore.
We also declare that this report has not been submitted for the award of any Degree, Diploma,
Associate ship, Fellowship or any other Title, in Christ (Deemed to be University) or in any other
University.

Macro Environment for Two wheeler Industry:
Source: CEIC
Manufacturing and industrial activity rebounded substantially after the first wave. However,
consumer expenditure (as a percentage of GDP) and industries that need social contact, such as
hospitality and tourism, increased marginally, indicating that pandemic-related concerns weighed
on consumers' minds.
Source: CEIC

As a result, despite supply chain interruptions, logistical problems, and decreased productivity,
economic activity persisted, although at a slower rate. In May 2021, the manufacturing PMI fell
to a 10-month low of 50.8, and then to 48.1 in June. Manufacturing activity dropped to its lowest
levels since August 2020, as well, as industrial production growth decreased in May.
Production of passenger vehicles, two- and three-wheelers, and motorcycles was 58 percent and
56.8 percent lower in May 2021 than in April 2021, respectively, due to the closure of numerous
automobile manufacturing factories. States progressively opened up as infections peaked and
declined in June 2021, and key supply-side constraints began to fade.
Fears and concerns around the virus, which has shown to be more resilient than originally
thought, have shook consumer mood once more, with the index declining steadily since March
2021, plummeting by a significant 15.4 percent between March and June. Unlike the previous
wave, the virus has gone considerably further this time, reaching even the most distant regions,
according to India's COVID-19 data. This has had a significant influence on rural attitude and
income, and as a result, rural demand is expected to be lower this year than last.
This is crucial as automotive sales often diverge with GDP growth rate due to faltering consumer