Satya's Weblog

Bajaj Auto is

Present in over 70 nations, Bajaj Auto is the world’s 3rd largest manufacturer of motorcycles and the largest manufacturer of three-wheelers.

Recently, Bajaj Auto has said that it can compromise on margin in motor cycle space to increase market share. Listening to that, its share price went down. I think, this is the call for long term investors to load it.

It has reached to Rs 3500 but currently trading at Rs 2700. We can wait for it for Rs 3700. It should not take much time. If you like companies from big market cap and at attractive valuation then this should one to check.

We can target 25-40% return in mid-term from Bajaj Auto!

Bajaj Auto has KTM sales contract here. It is an European racing bike.
Bajaj auto sales of Motorcycle is very good and it also also small carrier vehicles.

LIC is selling its stake. It still owns 4.45%. This can add pressure on price rise. But I think, we can take such risk. We cannot avoid these kind of risks.



It has Rs 20000 cash. From past few years, it has earned cash but not employed it as fast as it has earned. It is sitting on cash pile. It can help in future or in Bad economic cycle.

Bajaj Auto Aug 2018 sales:

Bajaj Auto Aug 2018 Sales

I think, this stock selection is a mistake and should be mentioned here. There are better stocks to give profit. This quarter result is just 6% increase in sales. I think this is not for retail investors.
After just 1-2 days of mention, any big guy has sold and that caused loss also.
CMP: Rs 587

Check "Matrimony.com Ltd" stock. It is having known matrimony websites - BharatMatrimony, and others related websites.




It is currently trading at Rs 744. PE is just 26.

Debt is an issue. Reserve is negative. But valuation is comfortable and also recent many quarters result is very good. If it continues then negative reserve is not high amount to pay.
Board meeting on Aug 10 to discuss result. Buying before result can be risky. If good result comes then some gain is possible but if bad result come then loss in short term is also expected.


Update: Aug 14, 2018
I think, this stock selection is a mistake and should be mentioned here. There are better stocks to give profit. This quarter result is just 6% increase in sales. I think this is not for retail investors.

It is clear in earlier discussion that even political parties do not want  #FullStateHood2Delhi As they understand the practicality of the situation.
I suggest a solution for Delhi and Center govt tussle:
Stop electing govt for Delhi.

Why to stop electing Delhi govt and give control to elected govt at Center:

1. Central govt control police,
2. LG decides many things,

Whole India selects Central govt. Just hand over small land to them!
After this no responsibility throwing like a ball will happen.

Kollam, Kerala is a Cashew nut city of India. It got its fame due to Cashew and Kerala got its richness due to this. Cashew growth has given many things to Kerala and later it helped develop Kerala.

Cashew trees were transported to India by Portuguese explorers sailing from Brazil in the 16th century. The trees soon found their way to the city of Kollam, an Indian Ocean port on trade routes once plied by the Italian wanderer Marco Polo and the Muslim adventurer Ibn Battuta.

The journey started when former General Foods contacted local Indian entrepreneurs for giving them processed Cashew. General Foods packaged Cashew in patented vacuum bags for export.

Later Kollam is taken over by Vietnam as Vietnam has taken a different route. Vietnam used its own developed machine instead of mostly manual till date method Kollam workers use.
Politicians and labor unions of Kerala did not allowed to use automation. Initially, lobor union helped worked get better pay package and health benefit but later it caused problem as Kollam need to catch up with Vietnam.
Still, Kollam is a very big Cashew processor but loosing due to Vietnamese machines as they are marketing Cashew as fresh and packaged without any human touch means more hygienic.

In 1999, Kollam saw its peak when it processed 80% of world cashew.

In 2006, to support farmers grow more cashew, Central Govt implied 9% duty on imported raw Cashew. Local govt increased 35% pay for the worker their fulfilling poll promise. But these just increased cost of Cashew.
Vietnamese are producing cashew worth 2000 workers with only 170 workers with their machines. Earlier, machines were not proper and caused many broken nuts but later it improved and added to lots of profitability.

There are many more stores here. Read in detail at this Wall Street Journal.

You read the example of how machine in food processing can also take our job but if not followed then the industry can shift to other countries.