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Post by Equity Section on Oct 16, 2011 18:16:37 GMT 5.5
Bajaj Corp mainly does business regarding hair oils. It sells Bajaj Almond Hair Oil, Baja Brahmi Amla Hair oil etc. It recently launched Bajaj Kailash Parbat Hair Oil. By this launch, they entered the cooling hair oil segment involving Navratna hair oil. Bajaj Corp did their IPO last year involving 300 crores. They sold each share at Rs. 660. The promoters hold 84% of the company. Later, the stocks were split to 1:5. Bajaj Corp is a debt-free company. As of March, 2011 Annual Report, they increased their Sales by 22% to 358.67 crores. Their Operating Profit margins are at 30% i.e. Rs. 108.08 crores. As on March, 2011, their Return on Capital Employed (ROCE) is at 234%. Their Cash Conversion Cycle is at minus 44 days. From Rs. 24 crores of Net Current Assets, they did Net Profit of around Rs. 84 crores.
For the current September quarter, the Net Sales increased by 31% to Rs. 106.77 crores. The Operating Profit margins for this quarter stands at 25% as compared to 28% for the same quarter previous year. The prices of raw materials was the main culprit for decreased margins. ROCE for the past 6 months is at 47%, while the Cash Conversion Cycle for past six months stand at minus 23 days.
There was a recent fall in prices of Bajaj Corp because of adverse reaction to their buying of Rs. 75 crores worth of property. The company later responded by saying that they needed the property as they wish to bring all the scattered offices at one place. And also, they bought the property at cheaper price.
Bajaj Corp is yet to launch 3 more products as was stated in IPO. Also, they're already talking about scouting for international acquisitions. Such plans can lead Bajaj Corp onto an explosive growth trajectory. The current prices work out around 11 PE on forward PE basis. I think folks can use this as an opportunity to lock onto a cheap undervalued FMCG company.
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neha
New Member
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Post by neha on Nov 10, 2011 16:15:49 GMT 5.5
Why does it make you so sure that what these people bought is really undervalued? How can you go by the management's arguments...Yes...I understand their logic about bringing offices together....but who knows about the valuation of real-estate deals?
The thing is that only time'll tell how this purchase will fare out....Otherwise...its an excellent company to ivest into based upon fundamentals.....
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neha
New Member
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Post by neha on Nov 10, 2011 16:16:54 GMT 5.5
Also,,, a nice undervalued pick on your part..Equity.....really nice one....A cheap young FMCG is what everyone looks for.........I'm already thinking about going into it....
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Post by Equity Section on Nov 11, 2011 21:41:07 GMT 5.5
Neha, thanks for joining this forum. Yes interesting question is being raised by you regarding that land buying by Bajaj Corp. I don't know whether this was a rational move by the Bajaj Corp company though definitely, its not cheap. I think only time can justify Bajaj Corp decision right or wrong. In the immediate outplay, its very difficult to justify Bajaj Corp buying. Once again, thanks for joining this forum. Why does it make you so sure that what these people bought is really undervalued? How can you go by the management's arguments...Yes...I understand their logic about bringing offices together....but who knows about the valuation of real-estate deals? The thing is that only time'll tell how this purchase will fare out....Otherwise...its an excellent company to ivest into based upon fundamentals..... |
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Post by A. D. Sharma on Nov 13, 2011 1:14:30 GMT 5.5
I'm very happy that atleast somebody is talking about Bajaj Corp on this planet. Nowhere, nobody talks about this fine small young company i.e. Bajaj Corp. Its very surprising. This company is debt free. Bajaj Corp operates on negative working capital Bajaj Corp has low Cash Conversion Cycle. Bajaj Corp has high RoCE. What else does one need? Bajaj Corp's dividend pay-out is excellent. Their interaction is good. Market picked up their only flaw i.e. land buying. Boss, its also a kind of asset. Why don't you think that way? Bajaj Corp can't launch all 4 products in one go. Bajaj Corp'll approach slowly. Mgmt. already stated that. So, in the meanwhile, if they get a bargain, its good. And, the logic's not bad about bringing all offices at one place. Why don't people think that way. In my opinion, Bajaj Corp is a very young undervalued cheap FMCG reday to get bought. Take your chance...
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Post by Equity Section on Nov 16, 2011 18:55:16 GMT 5.5
Annual Statments Analysis Bajaj Corp did an IPO in the financial year 2011. It has nil debt. Capital Employed for the year 2011 has been Rs. 462.3 million as compared to Rs. 235.6 million last year. This increase in Capital Employed for Bajaj Corp has been largely on account of increase in Working Capital of Bajaj Corp which is Rs. 242.7 million for this year as compared to Rs. 52 million last year. This increase in Working Capital is anticipated mainly because of increased cash component of Current Assets on the Balance-Sheet. Sales of Bajaj Corp for March 2011 has been Rs. 3.58 billion, up by 22% from Rs. 2.94 billion sales last year. Operating profit of Bajaj Corp for March 2011 is 30% at Rs. 1.08 billion as compared to 33% at Rs. 972.7 million last year. The slight decrease in Operating profit was mainly on the account of increased raw material prices. Net Profit for Bajaj Corp is 23% at Rs. 841 million as compared to 28% at Rs. 839.1 million for the previous year. Return on Capital Employed (RoCE) for Bajaj Corp is at 234% as compared to 413% for last year. The decrease in RoCE is on account of increase in Woring Capital requirements. Overall, Cash Conversion Cycle (CCC) for Bajaj Corp for March 2011 stands at - 44 days. Analysis of September quarter statements Net Sales for Bajaj Corp is up by 31% at Rs. 1.06 billion for this Septmeber quarter, 2012 as compared to Rs. 812.3 million for the corresponding quarter last year. Operating Profit for Bajaj Corp for September quarter is at 25% of Nat Sales at Rs. 271.1 million as compared to Rs. 230.8 million for the same quarter last year. Net Profit for Bajaj Corp for September quarter is at 27% of Net Sales at Rs. 287.4 million as compared to 19% of Net Sales at Rs. 151 million for the same quarter last year. Capital Employed for Bajaj Corp is Rs. 1.14 billion as on September, 2012 as compared to Rs. 462.3 million for March, 2012. The increase is mostly on part of increase in Loans & Advances of Bajaj Corp for the recent Rs. 750 million buy out of land for corporate purposes at Worli. ROCE for Bajaj Corp for six months ending September, 2012 is 47% as compared to 31% for the corresponding period last year. CCC for Bajaj Corp for period of six months ending September, 2012 is -24 days. Current Market Price of Bajaj Corp is at Rs. 103.70 per share. Net Profit per share for previous four quarters is coming out to be Rs. 7.03 per share. Price to Earnings ratio (PE) is coming out to be 14.75. Total Assets per share of Bajaj Corp is coming out to be Rs. 29.41. The overall conclusion regarding this analysis of Bajaj Corp is that when it comes to PE ratio, it seems this company is quiet undervalued to its FMCG peers like Zydus Wellness, Dabur, Marico or Nestle. Also, this company is looking for inorganic growth opportunities. Plus, Bajaj Corp is yet to launch the remaining three products as stated in IPO. So, the kind of feel with this company is that this company can go for high growth in recent future. Buying Bajaj Corp can be a wise decision. |
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Post by Equity Section on Jun 28, 2012 0:14:02 GMT 5.5
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Post by Equity Section on Jul 22, 2012 18:20:57 GMT 5.5
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Post by Equity Section on Sept 2, 2012 11:27:43 GMT 5.5
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Post by Amit Sharma on Oct 7, 2015 20:22:32 GMT 5.5
Today the quarterly results of Bajaj Corp got announced..
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