Sep 3, 2018

Bajaj Auto - a Stock from Quality space but for gradual earning

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