FINANCE & STOCK ADVICE: My View On Bajaj Finance

About The Company

This company provide finance to the customers to buy two-wheelers which should have actually seen a dip, given the soaring interest rates and thereby culling demand, Bajaj Auto Finance has emerged victorious. Despite Bajaj Auto reporting a fall in the sale of its two-wheelers, month after month, this company which finances the two-wheelers also has posted a very good performance for third quarter ended 31^st Dec 2008.

About The Results

For current Q3, the company has shown a 44% rise in net sales on a YoY at Rs.157.46 crore which on QoQ was up 15.6%. Despite operating expenses going up by 25% and interest coming down marginally by 2%, the rise in PAT has been phenomenal – it has gone up by a whopping 147% on a QoQ and 40% on a YoY at Rs.11.28 crore. Deployments were down at Rs.612 crore and the company has tightened its credit lines across all its products.

The company’s bad debts for the quarter rose by a sharp 54% at Rs.45.81 crore and its recovery commission was up 13% at Rs.10.91 crore.

Clues In the Stock

Clearly, the jump in the topline has helped the company and this jump was achieved through some smart marketing strategies. During Q3, it launched a new scheme – Loan against property across 11 cities in India. And this scheme, as the name suggest, offered loans against the properties – residential or commercial, for amounts ranging from Rs.25 lakhs to Rs.10 crore. This was sweetened with unique features like rewards for prepayment, nil preclosure charges, free personal accident coverage and non-medical insurance cover too. And for the two wheelers that it finances, it announced a scheme wherein it gave free extended warranty on all the Bajaj Auto vehicles it finances.

About The stock

The result could not be based as justification for fresh investment in this stock. This stock should be avoided for current times.

Disclaimer: I do not have any personal holding in this stock.

MULTI BAGGER STOCK GROUP

Some of my group's multi bagger picks during the rally were NMDC , MMTC , STC , Larsen ,Jindal Steel & Power , Unitech , BF Utilities , Jai Corporation , Walchand Nagar Industries, RNRL , Reliance Infra (Reliance Energy) etc.

I had been long associated with a corporate engaged in financial services , where with the assistance of specialized tools along with my special analysis as per some historical accepted theories of stock market like W. D. GANN's Theory , Elliot Wave Theory and others are used with reliable insider information of so called " operators" who play a major role to make a stock ,a Multi Bagger ,I do make my gem picks in this market.

I had been running my group , where the associated people get the reliable and most beneficial to get the unexpected return as seen in the above mentioned tips. Say for example the stock called MMTC had jumped from 2000 level to 56000 per share of historical price where the capital appreciated by 28 times in very short period with 2700% return on capital employed. Likewise in RNRL we started accumulating at RS 25 level from where we saw it moving at 250 level giving 10 times with 900% return.

These sort of return is helpful as ,

1. Handsome gain will make a jack to our capital.

2. Limited stocks trade , as daily trade could be avoided , which is more risky.

3. Long term capital gain , so no tax liability.

4. Whole income in white, which could be further deposited into fixed deposit to get assured monthly income later.

5. Strong income tax file without paying any taxes.

Our role here could be summarized as :

1. Giving tips to all registered member at proper time , when the stock is just about to take off, neither too early not too late.

2. Make sure investor do not gt stuck into it.

3. Recommend to exit when the operator is about to leave it.which is the most important work or else the whole accumulated and deemed profit will be washed away along with part of investment and will remain stuck for long - long period.


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My View On Bajaj Finance