Bajaj Auto Modifies Dividend Payout, Linking It To Cash Levels: Motilal Oswal

Bajaj Auto Modifies Dividend Payout, Linking It To Cash Levels: Motilal Oswal

Bajaj Auto signage. (Source: BloombergQuint)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Bajaj Auto Ltd.’s board has approved a new dividend policy that links dividend payout to the level of cash/cash equivalents, in turn increasing the payout to 90% of profit after tax (against 50% payout in the old policy). Considering -

  1. strong operating cashflows,
  2. limited avenues to deploy cash on the books, and
  3. declining yields on treasure, this is a step in the right direction and could lead to a rerating.

Click on the attachment to read the full report:

Motilal Oswal Bajaj Auto Company Update.pdf
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