Notes on Indian equities, sectors and economy

Bajaj Auto – what a disaster

Posted by fairval on May 24, 2007

That was one call horribly wrong. My earlier view was Bajaj Auto was perhaps going to settle at an equivalent of Rs 3000 or more after the split. That was assuming the company got full value out of the insurance sub. Now that the insurance investment is no more than an FD, the scrip is perhaps worth Rs 1800. Whats more, an auto 2 wheeler business simply isnt a great investment. With Honda increasingly getting aggressive, and interest scenario no longer benign, the scrip will underperform for quite some time


One Response to “Bajaj Auto – what a disaster”

  1. Gaurav said

    Agree that Bajaj badly burnt investors with its insurance business announcement. However, with the next move in interest rates most likely to be down, investors not looking kindly at Bajaj, and a complicated holding structure about to come in place, it might be the most interesting auto stock to look at in the next 6 months.

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