Lesser-known Bajaj stock that could be a multibagger

Riken Mehta

Shares of barely-traded PSU, India Tourism Development Corporation have rallied 795% over the last five months, on negligible volumes. On Monday, trading in the stock has been frozen at the upper end of the 5% intra-day circuit filter at Rs 981.40

The low trading volumes is not surprising, given the highly concentrated holdings in the stock. The government holds 92.11% in the company, Indian Hotels owns 7.87% and the rest is held by individual investors.

It is surprising why buyers have been bidding up the price over the last six months when the company does not have the fundamentals to justify the high valuation.

Its book value is Rs 36, and the company’s revenues have remained stagnant over the last five years.

The sharp rise on low trading volumes also indicates there could be a deliberate attempt to ramp up the stock price.

The stock is now trading at an extravagant price to earning ratio of 470 times its 2011-12 earnings. The company is debt free, but has contingent liabilities of Rs 476 crore.

All figures (Rs in Cr)

Company Name No of Shares Face Value Investment Amount Latest Price Market Value
Bajaj Hindusthan Ltd. 1255000 Rs.  1.00 0.45 26.7 3.35
Bajaj Finserv Ltd. 3387036 Rs.  5.00 17.67 910.7 308.46
Bajaj Auto Ltd. 6774072 Rs.  10.00 18.25 2055.5 1392.41
Bajaj Finance Ltd. 1638720 Rs.  10.00 21.61 1303.4 213.59
Bajaj Holdings & Investment Ltd. 3387036 Rs.  10.00 46.65 906.35 306.98
Total     104.62   2224.79

One thought on “Lesser-known Bajaj stock that could be a multibagger

  1. I have taken personal loan from Bajaj finance for Rs 714000/- . They cheated me by deducting Rs 14000/- in the name of insurance at the time of disbursal. When I tried enqiuiring about this there is no response from Bajaj Finance . I have written them the repeated mails to their customer care and the customer representatives from the Bajaj finance . Looks like it is falling in deaf ears.
    My idea of writing this complaint to get my money back what they deducted in the name of insurance , i.e, Rs 14000/-. I have even filed a complaint against them on their site as well as at Consumer Court site but so far no action has been taken on this case.


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