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BAJAJ HOLDINGS & INVESTMENTS

Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2616
Printed Date: 20/Apr/2025 at 8:16am


Topic: BAJAJ HOLDINGS & INVESTMENTS
Posted By: hit2710
Subject: BAJAJ HOLDINGS & INVESTMENTS
Date Posted: 11/Jan/2010 at 6:12pm

BAJAJ HOLDINGS AND INVESTMENTS.

THIS AS THE NAME SUGGESTS IS A HOLDING AND INVESTMENT COMPANY OF RAHUL BAJAJ GROUP FORMED AFTER DEMERGER OF BAJAJ AUTO LTD IN 2008.

PROMOTERS HOLDING AMOUNTS TO AROUND 50.11% WHICH INCLUDES

37.49%     PROMOTERS

5.74%       JAIHIND INVESTMENTS

3.35%       MAH SCOOTERS

1.81%        SIKKIM JANSEVA PRATISTHAN

1.72%        PREMIER INVESTMENT FUND

HOLDINGS OF BAJAJ HOLDINGS IN VARIOUS COMPANIES

 

COMPANY

NO OF SHARES

APPROX VALUE(CRORES)

1

MAH SCOOTERS

27,42,848

61

 

BAJAJ FINSERVE

5.03 CRORE

1050

 

BAJAJ AUTO

4.44 CRORE

7500

 

ACC

1,23,858

11

 

ALLAHABAD BANK

4,60,000

6

 

BAJAJ ELECTRICALS

23,06,768

190

 

BAJAJ HINDUSTAN

1.31 CRORES

301

 

AIRTEL

1,35,000

4

 

BHARAT FORGE

3,07,000

8

 

ICICI BANK

3.8 CRORE

3344

 

FORCE MOTORS

21,39,461

70

 

CROMPTON GREAVES

1,53,000

6

 

ELECTROSTEEL CAST

12,38,000

1

 

GRASIM

19931

50

 

GHCL

10,99,000

4

 

HIND ZINC

1,59,000

20

 

IFCI

37,74,000

20

 

L&T

2,76,000

47

 

M&M

2,61,000

27

 

MARUTI

87459

12

 

MUKAND

40,56,000

26

 

HEIDELBERG CEM

3,88,000

2

 

NEYVELI LIGNITE

1,25,000

2

 

PATNI COMP

67269

3

 

PATHEGA FORGINGS

5,75,000

 

 

RAYMONDS

79,929

2

 

RELIANCE COM

2,25,000

4

 

RELIANCE INDS

2,74,000

27

 

REL INFRA

81500

9

 

SHREE CEM

85836

15

 

SHRIRAM MULTI

2,39000

 

 

SIEMENS

1,16,000

1

 

SBI

74079

16

 

SAIL

5,08,000

12

 

SUZLON

1,45,000

1

 

TATA MOTORS

2,22,000

17

 

TATA STEEL

3,10,000

17

 

BHEL

66,123

14

 

GUJ ALKALIES

93,605

1

 

 

 

 

 

TOTAL

 

12900 CRORES

 

 

 

 

 

 

BESIDES, THE COMPANY HAS AROUND 900 CRORES INVESTED IN GOVT DEBTS AND SECURITIES.

IT ALSO HAS 30 LAC SHARES OF BSE  OF BOOK VALUE OF AROUND 122 CRORES(market value is only a guess and can be judged after BSE ipo)

IT ALSO HAS BONDS SHOWN IN ITS BALANCE SHEET AMOUNTING TO AROUND 200 CRORES.

SO IN EFFECT THE BONDS AND GOVT SECURITIES AND SHARE VALUATION COMES TO AROUND 14000 CRORES AND BSE VALUATION IS ADDITIONAL.

MARKET CAP OF COMPANY IS CLOSE TO 6500 CRORES.

THE COMPANY HAS CLOSE TO 60% DIVIDEND PAYOUT RATIO  WHICH ON CURRENT EARNINGS (EXPECTED EPS ABOVE 100) COULD AMOUNT TO AROUND 60 PER SHARE AND THIS STOCK COULD BE A GOOD DIVIDEND CANDIDATE ALSO BESIDES BEING A GROWTH PORTFOLIO.

 

TECHNICAL VIEW:

AFTER POSTING A HIGH OF 1246 IN FEB 07, THE STOCK HAD ENTERED DOWNTREND AND DURING RECENT MARKET CRASH HAD FORMED BOTTOM AROUND 210-220 DURING JAN09-MARCH09.

SINCE THEN THE STOCK IS IN AN UPTREND AND HAS BROKEN OUT OF AN INVERTED HEAD AND SHOUDLERS  RECENTLY AT AROUND 590 LEVELS AND IS CONSOLIDATING ABOVE THE NECKLINE.

HIGHER TARGETS COULD BE IN THE RANGE OF 900-1000 IN THE MEDIUM TERM –6 TO 12 MONTHS.

INVESTMENT IN THIS STOCK COULD BE SIMILAR TO INVESTMENT IN A CLOSE ENDED MUTUAL FUND AT MORE THAN 50% DISCOUNT TO NAV AND THERE COULD BE GOOD DIVIDEND YIELD GOING FORWARD. 

Most of the holding data is taken from latest annual report.

 

 

 



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Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart.


Replies:
Posted By: nav_1996
Date Posted: 11/Jan/2010 at 6:26pm
I fail to understand why companies have these kind of investments. Why don't they return the money to shareholders?

It is close ended MF which is closed for-ever, so I don't see value-unlocking on that front.

We can consider only if dividend yield is pretty good.

Posted By: hit2710
Date Posted: 11/Jan/2010 at 7:10pm
yes it is a close ended for ever kind of mf.

not my kind of stock but i just went through its balance sheet and did the exercise of calculating the value based on current valuations approximately and hence posted it just for sake of discussion to get some more insight.

Although chart pattern is encouraging.

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Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart.

Posted By: NeerajMarathe
Date Posted: 11/Jan/2010 at 10:38pm
have u taken a look at nahar capital? jus go thru their AR and investments ka schedule...

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Regards
Neeraj Marathe

Posted By: nav_1996
Date Posted: 11/Jan/2010 at 8:38am
My logic for all these companies is same. Nahar is also spin off from textile comapny. These managements were greedy and did not care for minority shareholders. They invested in stock market instead of returning the money to shareholders. I am sure they would not have out-performed index. If they wanted to keep cash for business purposes, they should invest in liquid funds.

Posted By: hit2710
Date Posted: 13/Jan/2010 at 6:24pm
consolidated q3 net profits at 272 crores.

9M net profits around 972 crores.
9M eps not annualised comes to around 96.

stock expected to post eps in excess of around 110-120.

Dividend could be equal to or higher than 40

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Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart.

Posted By: mohitrathi8
Date Posted: 23/Apr/2010 at 1:54am
the promoters have issued pref warrants to themselves while selling their stake in other cos.. BHIL should give good dividend in this presumption and the value of many investments have gone up drastically..

Posted By: hit2710
Date Posted: 23/Apr/2010 at 9:57am
Originally posted by mohitrathi8

the promoters have issued pref warrants to themselves while selling their stake in other cos.. BHIL should give good dividend in this presumption and the value of many investments have gone up drastically..


The stock price also seems to be moving up slowly and steadily.

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Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart.

Posted By: mohitrathi8
Date Posted: 13/May/2010 at 1:44pm
the stock has shot up after good results. excellent dividend too.

Posted By: hemtan100
Date Posted: 18/Jun/2011 at 4:29pm
latest annual report is out. company seems to have offloaded a substantial chunk of its icici bank state and got into coal, moil and bhel.....company has a huge list of equity listed and non-listed entities.
but a substantial portion of its value is based on the fortunes of Bajaj Auto....not too bad i would imagine with the company doing well.


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