Maharashtra Scooters Ltd-Multibagger

Maharashtra Scooters Ltd-Multibagger

Maharashtra Sccoters ltd’s investment into Bajaj Group as on 31st March 2015
No of shares Name of the company Rate 10-11-15 Value Value ( In crores)
1897466 Bajaj Finnace Ltd 5352.00 10155238032.00 1015.52
6774072 Bajaj Auto 2434.00 16488091248.00 1648.81
3725740 Bajaj Finserve Ltd 1950.00 7265193000.00 726.52
3387036 Bajaj Holding and Investment 1660.00 5622479760.00 562.25
  NCD   1260000000.00  
      40791002040.00 4079.10
No of shares       1.14
Per 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.

Good Trading To You!