Maharashtra Scooters Ltd-Multibagger

Maharashtra Scooters Ltd-MultibaggerMaharashtra Sccoters ltd’s investment into Bajaj Group as on 31st March 2015No of shares Name of the company Rate 10-11-15Value Value ( In crores) 1897466Bajaj Finnace Ltd5352.0010155238032.001015.526774072Bajaj Auto2434.0016488091248.001648.813725740Bajaj Finserve Ltd1950.007265193000.00726.523387036Bajaj Holding and Investment1660.005622479760.00562.25 NCD 1260000000.00 40791002040.004079.10 No of shares 1.14Per share investment 3568.77

Company background:

MSL, incorporated at Pune in 1975, is a jointly owned company by the Maharashtra Government (27% stake) and BAL (24% stake). MSL used to manufacture ‘Chetak’ and ‘Super’ range of scooters, which in turn were marketed and sold by BAL.

Maharashtra Scooters Ltd investments have been shown in the above table. The value of investments as of yesterday is at 3568/Share while the Current share price as of yesterday is at 1329. Hence we have a upside potential of over 100 percent. The company is totally debt free and we are expecting the company to be going into liquidation within the next 6 months as the main objects of the company (Manufacturing of scooters is over / not being done any more) In our valuation assessment we have not taken into consideration land bank held by the company at Satara in Maharashtra.

Technically the stock was consolidating between 940-1000 levels and post consolidation has broken out on significantly higher average volumes. The Stock price recently made a 52 week / life time high of 1523.95. We expect the upside to be very strong in this stock as it is significantly undervalued at current price. Charts of Maharashtra Scooters Ltd are clearly indicating accumulation by big investors who are informed circle buying. Buy Maharashtra Scooters Ltd with a target price of 3500+ in 6 months from now.

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Maharashtra Scooters Ltd Reiterate Buy and Hold. We see deep value. Maharashtra Scooters ltd’s investment into Bajaj Group as on 23rd June 2016No of shares Name of the company Rate 23-06-16Value Value