Posted inBlog

Bajaj Electricals Ltd

Due to year end
closing and audit, i am unable to post regularly. However few days back i have
entered in Bajaj Electricals at 220/-. In my earlier post, i have preferred
surya roshni over it due to loss incurred by Bajaj. But after delving dipper,
it has emerged that for first nine months of this year, its consumer product
division has posted a profit of around 117 cr, while its engineering contract business
has posted a loss of 110 cr. Engineering division is showing losses due to
aggressive bidding in the past. Now management has decided to bidding for
profitable projects only. Order backlog for loss making projects is reducing.
So bajaj is going
to show huge profits in future years. Its consumer divison is having a ROE of
around 70-80% (need to recheck, but it is near this) which can envoy even greatest of FMCG giants like
Nestle. It has also come into my knowledge that company has gone for outsourced
business model for consumer products mainly because of Govt. regulations
which has stipulated this segment for small scale units only. It also needs to
be confirmed.
But I have replaced my entire
holding of Surya Roshni with BEL due to its superior business model and brand
recall. Surya has blocked a lot of capital in low margin Steel business.
I will post a complete study on
Bajaj electrical whenever I’ll have time.
CMP is 222/-

(Views are personal and should not be taken as a recommendation for buying or selling a stock. Stock markets are inherently risky so kindly do your Due Diligence before investing)

5 Comments

  1. Anonymous
    Reply
    June 27, 2015,

    Hi Gurpreet ,

    Just from my bookish knowledge ROE over 50% is unsustainable. However , if it can maintain an 50% ROE in medium term (3-5 yrs) from a reputed company like this , the company will move into a different orbit.However all this can happen based on LED revolution only . Ur earlier pick "eveready" proved it and also sky rocketed. I think bajaj have enough financial strength in-case if it has to spend on more advanced equipment/Expansion of units.
    Just wanted to follow up ur study on this company .
    Also curious to check your view on demerging engineering division.

    Regards!

  2. Anonymous
    Reply
    June 28, 2015,

    Dear Sir, added a separate post on Bajaj Electricals Ltd…

  5. Anonymous
    Reply
    October 29, 2019,

    Hi,this is really very nice blog.I have learned a lot of good and informative stuff from your blog.Thank you so much for sharing this wonderful post. Keep posting such valuable contents.
    We are also into the Digital Marketing space.
    Please visit our website by clicking the links given below.
    <b>
    <a href="http://maxket.org/&quot; title="Best Digital Marketing Training Course in Kolkata" rel="nofollow">Best Digital Marketing Training Course in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Best Digital Marketing Training Centre in Kolkata" rel="nofollow">Best Digital Marketing Training Centre in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Best Digital Marketing Training Center in Kolkata" rel="nofollow">Best Digital Marketing Training Center in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Best Digital Marketing Training Institute in Kolkata" rel="nofollow">Best Digital Marketing Training Institute in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Best SEO/Search Engine Optimization Training Centre in Kolkata" rel="nofollow">Best SEO/Search Engine Optimization Training Centre in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Best SEO/Search Engine Optimization Training Center in Kolkata" rel="nofollow">Best SEO/Search Engine Optimization Training Center in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Best SEO/Search Engine Optimization Training Course in Kolkata" rel="nofollow">Best SEO/Search Engine Optimization Training Course in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Best SEO/Search Engine Optimization Training Institute in Kolkata" rel="nofollow">Best SEO/Search Engine Optimization Training Institute in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Best Digital Marketing SEO Internship in Kolkata" rel="nofollow">Best Digital Marketing SEO Internship in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Best Digital Marketing SEO Agency in Kolkata" rel="nofollow">Best Digital Marketing SEO Agency in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Best Digital Marketing SEO Jobs in Kolkata" rel="nofollow">Best Digital Marketing SEO Jobs in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Digital Marketing Course Fees in Kolkata" rel="nofollow">Digital Marketing Course Fees in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Digital Marketing Course Online in Kolkata" rel="nofollow">Digital Marketing Course Online in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Digital Marketing Expert Abuzar Shah Qureshi in Kolkata" rel="nofollow">Digital Marketing Expert Abuzar Shah Qureshi in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Digital Marketing Expert in Kolkata" rel="nofollow">Digital Marketing Expert in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Best Digital Marketing Company in Kolkata" rel="nofollow">Best Digital Marketing Company in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Best SEO Company in Kolkata" rel="nofollow">Best SEO Company in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Best SEO Services in Kolkata" rel="nofollow">Best SEO Services in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Digital Marketing Jobs for Fresher in Kolkata" rel="nofollow">Digital Marketing Jobs for Fresher in Kolkata</a>
    <a href="http://maxket.org/&quot; title="Best SEO Jobs for Fresher in Kolkata" rel="nofollow">Best SEO Jobs for Fresher in Kolkata</a>
    </b>

Leave a Reply to Anonymous Cancel reply

Your email address will not be published. Required fields are marked *