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Sunday, 24 October 2010

BAJAJ HOLDINGS: LIBERAL BONUS ISSUE OR HEFTY DIVIDEND ANNOUNCEMENT PROBABILITY

BAJAJ HOLDINGS: CMP: Rs.869.45/-

Bajaj Holdings & Investment reported unaudited results for its quarter ended September 30, 2010 on 19th October 2010.

Bajaj Holdings & Investments net profit surged by 97.47% and stood at Rs 590.30 crore for the quarter ended September 30, 2010 as compared to Rs 298.92 crore for the quarter ended September 30, 2009. Its total income stood at Rs 608.15 crore for the Q2 FY11, spiked up by 97.52% as compared to Rs 307.89 crore for the Q2FY10.

On Consolidated basis, the groups net profit has expanded by 99.29% to Rs 649.45 crore for the quarter ended on September 30, 2010 as compared to Rs 325.88 crore for the corresponding quarter of the previous year. The total income has increased from Rs 210.63 crore for the quarter ended September 30, 2009 to Rs 427.41 crore for the quarter ended September 30, 2010.

            Immediate Triggers.      
  1. Bajaj Holdings will be among the 23 scrips added to the F&O segment from 29 October 2010. It is most likely that operators may take its share price to Rs.1000-1100 levels post debut into the  F&O segment For those of you who own the stock it’s a strong: Hold your Horses, for those of you who donot have any ,I would recommend(obviously subject to your own due diligence) either a staggered investment and for aggreissive investors buy and hold.
  2. With the Q2FY11 performance of Bajaj Holdings being better than Bajaj Auto with an EPS of Rs.61 against Rs.23 of Bajaj Auto, I foresee either a LIBERAL BONUS announcement like Bajaj auto did a couple of months ago or a hefty dividend payout, if any of this event materialises then I am confident that Bajaj Holdings will not only touch my target price of Rs.1500 but also surpass it quite easily in 6-8 months’ time period.
       Technical Perspectives :     
  1. Bajaj Holdings is trading very close to its rising trend line support which it has been  respecting post it November’09 lows of Rs.465/-
  2. Also at such important trend line support it has a confluence support coming in from multiple exponential moving averages and Fibonacci numbers.
  3. Momentum oscillators are also positively placed which add weight to the positive sentiments.
  4. Going ahead the stock has resistance at 890 and 900 levels where as strong support is seen at 850 and 825 levels.

        Happy Investing


       PRASHANT




DISCLAIMER


I am NOT an investing professional. I will sometimes jump into something that appears to be good; it may or may not be. Even if it is good for me, it may not be good for you. Anything I write on this site is my opinion and should NOT be relied on or taken as investing advice. Material presented here is for informational purposes only. Before acting on anything you read on this site, you must do your own research and you must come to your own conclusion which you will ultimately be responsible for, including any loss you may incur.


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