Archive for the 'BAJAJAUTO' Category

Buy BAJAJAUTO on correction

July 12, 2008

BAJAJAUTO @ 500 as on 11/07/08 gets 956 panch-tattva points and those who hold it should sell out and buy at lower rates which should be possible. The new entrants may wait for some correction for buying it.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market


ACC, ABB, BHEL, BAJAJAUTO, GRASIM, DRREDDY Panch Tattva points after results and now

November 17, 2007

By krsna Khandelwal – A veteran market analyst

ACC @ 1038 (18/10/07) gets 1042 panch-tattva points and is good for purchase till next result.
(@1044 on 16 Nov 07 it gets 1048 points and same strategy.)

ABB @1436 (261007) gets 727 panch-tattva points and may be sold off
for the time being , buy back on good correction in a few strokes.
(@1647 0n 16 Nov 07 it gets 756 points and may be sold off only at this stage for buy back wait till next quarterly result)

BHEL @2615 (291007) gets 846 panch-tattva points and may be sold for
good till the next advice, do not buy on correction even.
(@2786 on 16 Nov 07 it gets 880 points but still to be sold and waited till it gets signal to buy in terms of panch-tattva points. This carries too eskewed risk reward ratio hence risk averse people may not touch it.)

BAJAJAUTO @ 2507 (19/10/07) gets 872 panch-tattva points and should be
sold now and bought on correction.
(@2315 on 16 Nov 07 it gets 908 points and may be bought moderately and added more on declines but profit should be booked on part qty on jumps.)
GRASIM @3842 (291007) gets 1139 panch-tattva points and may be sold for the time being and bought on correction for up to next result.
(@ 3821 on 16 Nov 07 it gets 1114 points and you may have already entered at the lower rates after selling as price touched point lower than 3500. Repeat the strategy.)

DRREDDY @630 (241007) gets 851 panch-tattva points and may be sold for
now, buy later on declines.
(@620 on 16 Nov 07 gets 870 points and sell on surges and buy on declines and retain a small part.)

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

BAJAJAUTO @ 2507 (19/10/07) after results

October 20, 2007

BAJAJAUTO @ 2507 (19/10/07) gets 872 panch-tattva points and should be sold now and bought on correction.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market


July 13, 2007

By krsna Khandelwal – A veteran market analyst


Please note the following Panch Tattva points after the 1st Quarter result for the period ended 30 Jun 07:

INFOSYSTCH @ 1922 (12/07/07) gets 920 points and may be bought in moderation and better is to buy it for over time instead in one go.

BAJAJAUTO @2194 (12/07/07) gets 770 points and this scrip may be sold off just now and be bought back on correction but only moderately.

UTIBANK @642 (12/07/07) gets 872 points and should be sold off and waited for up to the next result time before considering buying back.

The market has been up but seems without any basic reason for doing so. The liquidity is the major factor making advances possible and the same factor will work towards contracting it as soon as liquidity dries up in times ahead. Have your exposure to the minimal level and the item that show sudden jump should be sold off without thinking twice.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

Market Matrix: Merger and Demerger by Indian Businesses

May 21, 2007

By krsna Khandelwal – A veteran market analyst


In the week gone by Mr. Mallya added Whyte and Mackey (Glasgow based scotch giant) to UB group at a cost of $1.18 b. He was presented a bottle of 65 year old Dalmore Single Malt by Whyte and Mackey (cost about Rs 40 lacs) on the occasion of inking the deal. The buy out would make UB group the second largest liquor maker with 74.5 million cases produced in a year. This is yet another feather in the cap of Indian businessmen. There has to some underlying weakness in the western economies that is letting Indians grab companies after companies. In my opinion, the weakness is that there is dearth of people who can be handed the reins of the companies.

The supreme court has issued notices to central and the state govts asking why the laws enabling them to acquire land not be cancelled as a big land grabbing exercise is going on at the instance of big corporates. If you recall a similar view was presented to you much earlier on these columns. Some thing has to be done about it, even if some quarters call it judicial activism.

The public sector companies like ONGC, IOC, BHEL and SAIL etc. are sitting on huge cash and may be allowed to invest in MF units. There have been unit related scams through Mutual Fund route in the past and necessary safe guards should be put in place too.

Bajaj Auto announced scheme for splitting company in to three. The shareholders will have share in each of these companies in 1:1 ratio. Auto and finance business will be transferred to new companies and will be controlled by Rajiv and Sanjiv Bajaj respectively. There will be a third company, a holding company under Mr. Rahul Bajaj and will have a lot of cash with it. Mr. Rahul Bajaj and his four brothers have yet to settle the partition issues finally while this has propped up. The complication may have the background that some axe somewhere is ready to be grounded. Mr. Rahul Bajaj is a complex personality with a love for cash otherwise why endless opportunities would have been missed inspite of cash resource and the family’s size by the gentlemen at the helm. There were possibilities in diversification or even related diversification but he missed them all. Once satisfied a Marwari loses initiative albeit his satisfaction level comes mostly at a late stage. Mr. Rahul has only been satisfied much too early.

Bajaj Auto share shed 10% value on 17th May 07 after the above announcement. A look at Bajaj Auto’s consolidated Balance Sheet reveals that it has Rs1003 crs invested in auto business, Rs512 r invested in insurance business and further it has Rs6239 crs in investments. The investments have yielded Rs384 crs in profits (6.15% per annum). Now see how much benefited were the Bajajs with investments in earst while UTI, demise of which has been a real dampener for them. They, however, were smart enough to be out of UTI investment just a day before the UTI woes were made public.

In contrast to uncle Rahul, his nephew Kushagra stands far taller than most Bajajs. He has catapulted the Bajaj Hindustan, the sugar company in Bajaj Group, to the top in every way. Do you also think that Mr. Rahul’s aggressive public postures are to conceal the meek heart, the risk adverse attitude?

The Sensex added 1844 points since 30 Mar 2007 (14.80%) when RBI had hiked the interest rates. The FIIs have yielded more in dollar term due to appreciation of rupee. Foreign inflow has been $14.7 b over last two years, while for preceding five years it was just $3 b. The retreat of money may leave a bloody trail back here and this has to keep in mind.

Birlas have named their retail chain as ‘MORE’. They would go in to it alone and invest Rs 8000 crs to Rs 9000 crs. With Tatas, Ambanis, Mittal of Bharati Group and some smaller people, this sector will see fierce fighting. Given the temperament of the retail buyers in India, the margins have to be very less and unless the funding cost is calculated at the international level of interest, the returns would seem very poor. There is one thing that has glued the big people to this sector is the investment going in to prime property also .The doors have been shut for the middle level entrants. This is some very interesting too, from a disorganised nature of retailing so far, it is going to be the world class, even latest in the world class. I hope to see the value of retail spending by Indian consumer going up by 10%on average. This is some thing good to happen. As a rupee saved is more than a rupee earned.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market