Sharekhan maintains 'Buy' on Bajaj Holdings
Sharekhan has maintained a buy call on Bajaj Holdings and expects the stock to touch a target price of Rs 729, an upmove of over 63 per cent.
By ET Bureau |
MUMBAI: Sharekhan has maintained a buy call on Bajaj Holdings and expects the stock to touch a target price of Rs 729, an upmove of over 63 per cent.
"Bajaj Holdings & Investments was created by de-merging Bajaj Auto and the company primarily functions in investment space. The company is also on a lookout for new business opportunities. The company holds Rahul Bajaj Group's strategic investments in Bajaj Auto, Bajaj Finserv, Bajaj Auto Holdings and Maharashtra Scooters. It also looks into other investments in equity markets and government securities, bonds, debentures and mutual funds. We value BHIL based on our price target for Bajaj Auto, Bajaj Finserv and other investments at market value and give the holding company a discount of 30% for the same. Moreover, we add the value of its cash and liquid investments, which gives us a fair value of Rs729 for the stock, which is quite above its current market price of Rs 446. Further, a healthy dividend yield of 2.3% and a zero-debt status of the company make the stock attractive. We therefore maintain Buy recommendation on the stock," said the Sharekhan note.
"Bajaj Holdings & Investments was created by de-merging Bajaj Auto and the company primarily functions in investment space. The company is also on a lookout for new business opportunities. The company holds Rahul Bajaj Group's strategic investments in Bajaj Auto, Bajaj Finserv, Bajaj Auto Holdings and Maharashtra Scooters. It also looks into other investments in equity markets and government securities, bonds, debentures and mutual funds. We value BHIL based on our price target for Bajaj Auto, Bajaj Finserv and other investments at market value and give the holding company a discount of 30% for the same. Moreover, we add the value of its cash and liquid investments, which gives us a fair value of Rs729 for the stock, which is quite above its current market price of Rs 446. Further, a healthy dividend yield of 2.3% and a zero-debt status of the company make the stock attractive. We therefore maintain Buy recommendation on the stock," said the Sharekhan note.
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