Bajaj Holdings & Investment Limited (BHIL) is an investment firm that has stake holdings in Bajaj Auto Limited and Bajaj Finserv Limited, and a special emphasis on new business opportunities.
The market cap of BHIL, as of March 2018, is more than Rs.29,000 crore.
Company’s Wealth and Recent PerformanceQ1 FY 2018-19
The key financial highlights of the company’s performance for the Q1 FY 2018-19, ended 30 June 2018 are as follows:
- Bajaj Holdings & Investment Limited holds strategic stakes of 31.54% in Bajaj Auto Ltd. (BAL),
- 39.29% in Bajaj Finserv Ltd. (BFS) and 24% in Maharashtra Scooters Ltd. (MSL).
- Bajaj Holdings Ltd. recorded an increase of 32% in the consolidated profit after tax (PAT) and stood at Rs.711 crore, as compared to Rs.538 crore on Q1 FY 2017-18.
- The consolidated total income of the company stood at Rs.106 crore.
- The consolidated PAT for BAL recorded an increase of 24% to Rs.1,042 crore as against Rs.837 crore in Q1 FY18.
- The consolidated PAT for BFS registered a growth of 41% and stood at Rs.826 crore as against Rs.585 crore in Q1 FY18.
- The standalone profit on fixed income securities stood at Rs.2 crore.
- The interest on investments and other income was at Rs.99 crore.
The key financial highlights of the company’s performance for the full FY 2017-18, ended 31 March 2018 are as follows:
- The company recorded an exceptional increase of 144% in the standalone PAT that stood at Rs.1,314 crore, as against Rs.538 crore in FY 2016-17.
- The consolidated PAT recorded an increase of 29% and stood at Rs.3,186 crore, as against Rs.2,473 crore.
- The company’s dividend income stood at Rs.571 crore as compared to Rs.97 crore in FY 2017.
- For Q4, FY 2017-18, Bajaj Holdings recorded an increase of 42% in the consolidated PAT which stood at Rs.801 crore, as against Rs.563 crore for the same period in the previous year.
- BAL’s consolidated PAT recorded an increase by 20% and stood at Rs.4,154 crore, as against Rs.3,458 crore in FY17.
- BFS consolidated recorded its highest ever annual profit of Rs.2,741 crore in FY18, up 21% as against Rs.2,262 crore in FY17.
- Bajaj Holdings & Investment Limited is essentially an investment firm that earns through interests, dividends, and profits on investments that are held by it. Therefore, its standalone results reflect the earnings made through the afore-mentioned means while consolidated earnings reflect the performance of its underlying companies.
- Its standalone profit after tax for the Q3 FY18 was reported to be Rs.269 crore - an increase of more than 115% over the corresponding quarter last year. Consolidated profit after tax in the same period was Rs.914 crore in contrast to Rs.647 crore in Q3 FY17.
- BHIL’s Standalone profit after tax for 9M FY18 was Rs.1,112 crore whereas consolidated profit after tax in the same period was Rs.2,384 crore - an increase of 173% and 25% over 9M FY17 respectively.
Bajaj Holdings & Investment Limited Stock Trends in 2018
- On January 1, 2018, the opening price of BHIL stock on NSE was Rs.2,868. The share price did not undergo any major fluctuations up until the second week of the month, when the price started to fall. The stocks entered Rs.2,700 territory and it stayed this way until the end of the month. The closing price on January 31 on NSE was Rs.2,808.45.
- The month of February witnessed another decline in Bajaj Holdings share price and this time, worldwide market turbulence and weak global cues were some of the leading causes. By the end of the first week, the shares were being traded at around Rs.2,690. However, the scrip recovered towards the end of the month and the closing price on February 28 was Rs.2,723.55 on NSE.
- The price of the stock at in the first week of March reached Rs.2,780. However, it fell by around 280 points and reached Rs.2,501. Towards the end of the month, the stock price picked up the pace by 100 points and stood at Rs.2,614.
- The scrip fluctuated by around 50 points throughout the month of April. By the end of the month, the price of the stock stood at Rs.2,614.
- In the month of May, the stock price declined by around 95 points and reached Rs.2,612. However, it picked up the pace and reached Rs.2,852 by 24 May 2018. It fell by few points and ended the month at Rs.2,797.
- The price of the stock in June crossed the Rs.3,000 mark. The scrip was at the highest at Rs.3,213 on 22 June 2018. By the end of the month, the stock price stood at Rs.2,900.
- In the month of July, the stock price was stable and changed marginally. The opening price of the stock by the end of the month stood at Rs.2,950.
- The price of the stock in the month of August increased gradually. By the end of the month, the scrip Rs.3,125.
- The scrip was pretty stable in the month of September. As on 19 September 2018, the price of the stock stood at Rs.3,062.
Bajaj Holdings & Investment Limited Stock Trends in 2016 and 2017
- Bajaj Holdings stock price at the start of 2016 was around Rs. 1,670 on NSE and BSE. By early February, the scrip had lost more than Rs.200 and as a result, the BHIL shares were being traded at around Rs.1,440. Things remained roughly the same through the month of March as well and the closing price at the end of the month was Rs.1,468.50 on NSE. An interim dividend of 250% was also announced in the same month.
- In April, BHIL share price crossed Rs.1,500, albeit it stayed there only for a short while. The same happened in the month of May as well, although this time, the stocks managed to sustain themselves above that level. Throughout June, Bajaj Holdings shares were being traded at values above Rs.1,500 and by the end of the month, it crossed Rs.1,600.
- In July, the company announced a final dividend of 75% following which, there was a sharp spike in the Bajaj Holdings stock price. The shares crossed Rs.1,800 in early August though they failed to find consistency at that level. It was not until September that the scrip found some stability at above Rs.1,800. The price increased through the month and by the end, it had crossed Rs.1,900.
- Investors had a lot to cheer for in the month of October, when the share price crossed Rs.2,000. The upward trend was observed throughout the month as the stock price managed to get past Rs.2,100. However, post demonetisation, the stocks shed their recent gains and went down to be traded in Rs.1,900 territory. The share price did recover by the end of the month, only to go down again. The closing price at the end of the year was Rs.1,819.35.
- The month of January 2017 witnessed Bajaj Holdings stocks trying to recover from their previous losses. By early February, the stock price had crossed Rs.2,000 again and shares were traded at above this value for most of the month. In March, the stock price crossed Rs.2,100 and the closing price on March 31, 2017, was Rs.2,163.95 on NSE.
- The month of April went by smoothly without any major nosedives. The share price remained above Rs.2,100 until mid-May, when the scrip crossed Rs.2,200. However, this was immediately followed by a sharp fall in stock price and the shares were once again back in the Rs.2,000 territory. The stocks managed to recover in June and the closing price at the end of the month was Rs.2,112.85 on NSE.
- The company announced a final dividend of 325% in July, which was soon followed by a sharp increase in stock price. By late July, the scrip had crossed Rs.2,300 and by the end of August, it had entered Rs.2900 territory. While it appeared that Bajaj Holdings share price will cross Rs.3,000 soon, the markets took a reverse turn and the price went down in September. The closing price at the end of September 2017 was close to Rs.2,866 on NSE and BSE.
- The share price recovered again in October and once again, it crossed Rs.2,900. This time too, it seemed that the scrip will cross Rs.3,000 but by early November, the shares shed their recent gains. The price did not vary significantly in December and the closing price at the end of the month was Rs.2,867.35 on NSE and BSE.
Should you invest in Bajaj Holdings & Investment Limited?
- Bajaj Holdings & Investment Limited is an investment firm that has strategic interests in Bajaj Auto Limited (BAL) and Bajaj Finserv Limited (BFS). It owns 31.54% stake in BAL and 39.29% stake in BFS. Furthermore, it also owns 24% stake in Maharashtra Scooters Limited and has holdings in MSL, ICICI Bank and other equities. Considering that BAL and BFS can tap into Bajaj Holdings’ cash pool for growth and expansion, the company stands to benefit from the future growth of these two entities.
- From a financial standpoint, Bajaj Holdings has done well over the years. Its revenue and profit after tax have increased year by year, except for in 2016 where it went down. Nonetheless, being a part of the coveted Bajaj Group, the company is fundamentally strong and can be expected to generate steady revenues and profits in the coming years.
- In comparison to its peers in the finance-investments sector, Bajaj Holdings is ranked second in terms of net profit and total assets, trailing behind Muthoot Finance. Therefore, it is fair to say that the company is doing relatively well in its sector. From a long-term perspective, it may be a good idea to accumulate Bajaj Holdings shares, although entry point, as of March 2018, may seem unfavourable. You can either wait for the price to go down or invest in mutual funds with holdings in the company. Either way, please consult your financial planner and research thoroughly before investing.
Bajaj Holdings & Investment Limited, previously known as Bajaj Auto Limited, is an investment firm that owns more than 30% stakes in Bajaj Auto Limited and Bajaj Finserv Limited. Bajaj Holdings owns all the businesses, properties, liabilities, assets, and investments of the erstwhile Bajaj Auto Limited, with the sole exception of manufacturing undertaking and strategic business undertaking. The company focuses on earning through dividends, interests, and profits on investments held.
History of the Company
Bajaj Holdings & Investment Limited stemmed out of a demerger as per the Order dated December 18, 2007 of the Honourable Bombay High Court. The manufacturing undertaking was transferred to Bajaj Auto Limited, while strategic business undertaking, wind farm business and financial services were given to Bajaj Finserv Limited. Bajaj Holdings is primarily responsible for dealing with investments, assets, liabilities, businesses, and properties owned by the erstwhile Bajaj Auto Limited.
Sanjiv Bajaj - Managing Director
Mr. Bajaj became the Managing Director of the company on April 1, 2012. He obtained a degree in Mechanical Engineering from Pune University. He followed this with a Masters Degree in Manufacturing Systems which he got from the University of Warwick. He also holds an MBA from the Harvard Business School.
He joined the company in 1994 as an Officer on Special Duty and three years later, he became the General Manager. In 2001, he became the Vice-President (Finance) and in April 2004, he became the Executive Director - a position he held till March 2012. He played an instrumental role in boosting the international sales of the company’s products from $175 million in 2003-04 to $375 million in 2006-07. It was under his leadership that the Bajaj Group became one of the leading conglomerates in the country with an emphasis on financial needs of an Indian consumer.
Rahul Bajaj - Chairman, Head of Bajaj Group of Companies
Mr. Bajaj, an Honours Graduate in Economics and Law and an MBA graduate from the Harvard Business School, served as the Chief Executive Officer of the erstwhile Bajaj Auto Limited. He led the way for the Bajaj Auto Limited to become the country’s leading two & three-wheeler company. He has been honoured with several accolades, the most notable of which is the Padma Bhushan award which he got in 2001.
Bajaj Holdings & Investment Limited Listings in NSE, BSE, and Indices
Bajaj Holdings shares are available for trading on the National Stock Exchange and the Bombay Stock Exchange Limited. The codes for the same are as follows:
- NSE - BAJAJHLDNG
- BSE - 500490
- ISIN - INE118A01012
- Sector - Finance - Investments
As for the stock market indices, the company is a part of the following indices:
- S&P CNX 500
- BSE 200
- BSE 100
Mumbai-Pune Road, Akurdi,
Pune - 411-035
Phone number - 020-27472851
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