NSE Symbol: BAJFINANCE | BSE Code: 500034
The 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.
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 got a Masters Degree in Manufacturing Systems 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 the 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 honored 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
Mumbai-Pune Road, Akurdi,
Pune - 411-035
Phone number - 020-27472851
The market cap of BHIL, as of March 2018, is more than Rs.29,000 crore.
Bajaj Holdings & Investment Limited is necessarily 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 revenues 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.
On January 1, 2018, the opening price of BHIL stock on NSE was Rs.2,868. The share price did not undergo any significant 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. The shares were being traded at around Rs.2,690 by the end of the first week. However, the scrip recovered towards the end of the month, and the closing price on February 28 was Rs.2,723.55 on NSE.
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. theless, 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 regarding net profit and total assets, trailing behind Muthoot Finance. So it is justified 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 unfavorable. Either you can wait for the price to go down or invest in some mutual funds with holdings in the company. Either way, please consult your financial planner and research thoroughly before investing.
A lot of research and knowledge is required in stock market investments, and generally, they don't offer any tax benefits. Hence at mymoneykarma, we merely motivate our readers to invest in mutual funds. Investing in mutual funds doesn't require a lot of knowledge, and equity-linked mutual fund schemes also provide tax benefits. In addition to it, since mutual funds contain stocks from multiple companies, they help in building a diversified portfolio.
Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.
The Bombay Stock Exchange, popularly called BSE, is Asia's first and oldest stock exchange. Located at Dalal Street in Mumbai, the BSE was formally established in 1875 by an influential stockbroker and businessman called Premchand Roychand. In the initial days, the BSE had its meetings under several Banyan trees in Mumbai before finding a permanent place, which is very appropriately named Dalal Street or Broker Street. After functioning as a floor trading exchange for more than a century, BSE ascended the digital ladder in 1995 by implementing a new screen-based automated trading platform with a capacity of 8 million orders in a day. In 2012, the BSE went global by becoming a Partner Exchange of the United Nations Sustainable Stock Exchange. Subsequently, BSE established India's first international exchange, called INX, in 2016.
NSE was set up in 1992 by a group of leading Indian financial institutions, following the Indian Government's directives. It aimed to bring transparency to the Indian capital market. It was India's first demutualized electronic exchange which operated on a completely automated screen-based electronic trading system, offering an easy trading facility to all Indian investors. NSE began its operations in the Wholesale Debt Market segment in 1994. NSE was the first company in India to offer a digital platform that connected the investor base of the entire country. NSE offers services in various segments, such as trading, equity derivatives, clearing and settlement services in equity, debt and currency derivatives, etc.
The NIFTY is NSE's flagship index that tracks the behavior of a portfolio of blue-chip companies that have the largest and most liquid Indian securities. It is owned as well as managed by IISL (India Index Services and Products Ltd), which is India's first specialized company to focus on an index as a core product. Nifty indexes 50 of the 1600 companies on the National Stock Exchange (NSE) and is thus popularly referred to as 'Nifty 50'. It captures approximately 65% of its float-adjusted market capitalization and is a true reflection of the Indian stock market. The Nifty 50 includes the major sectors of the Indian economy. It offers the exposure to the Indian market in one efficient portfolio. The Nifty index has been trading since April 1996. It is ideally suited for index funds, benchmarking and index-based derivatives.
Sensex is BSE's stock market index. It consists of 30 well-established and financially flourishing companies listed on BSE. It was established in 1986. These 30 component companies are known for being the largest and most actively traded stocks. They represent various industrial sectors of the Indian economy. Sensex is also known as BSE 30 and S&P BSE SENSEX. The word 'Sensex' is a portmanteau of the words 'Sensitive' and 'Index.' SENSEX is widely reported in domestic and international markets through print and electronic media. The indexing system is scientifically designed, based on globally accepted construction and review methodology. Since September 2003, S&P BSE Sensex is being determined on a free-float market capitalization methodology.