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Bajaj Consumer - Is it a Value Buy or a Value Trap?

Discussion in 'Technical Analysis' started by shabbir, Dec 6, 2019.

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Bajaj Consumer is it a value buy or a value trap?

  1. Value Buy

    1 vote(s)
    100.0%
  2. Value Trap

    0 vote(s)
    0.0%
  1. shabbir

    shabbir Administrator Staff Member

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    I am planning to enter into Bajaj consumer. What are your views on this stock. An FMCG company with very unique product mix available at 15PE. Do you agree with my view that it is a value buy at around Rs. 240?
     
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  2. nirajshah

    nirajshah Champion

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    chaitanya_mella likes this.
  3. jazeelfarooq

    jazeelfarooq Member

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    Hi, Shabbir, promoter pledged all the shares
     
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  4. shabbir

    shabbir Administrator Staff Member

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    Yes true and that is one of the main reason for the fall in the company. The Bajaj group should be able to pull this off. One of the main reason for such high dividend. Promoters are getting the money in the form of dividend to release the pledge. As a shareholder you also get a good chunk of your investment as dividend.

    Business is as usual. Your views on it.
     
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  5. shabbir

    shabbir Administrator Staff Member

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    Added poll to the thread. Let's see what people has to say about it.
     
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  6. jazeelfarooq

    jazeelfarooq Member

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    My question they pledged entire capital
    How may years dividend needed to clear this pledged amount ? And dividend distribution tax also need to pay by company.. this is one side
    Another side promoter having good history and good products
     
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  7. shabbir

    shabbir Administrator Staff Member

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    Yes. Thats the dilemma. Is it a value or a trap is the questions.

    In such cases we have to invest in the management than on the financials. :D
     
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  8. jazeelfarooq

    jazeelfarooq Member

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    Let us know once you buy.. I will also.. management and products are good
     
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  9. shabbir

    shabbir Administrator Staff Member

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    Yes sure. Still doing a lot of research. There is no hurry to buy as of now.
     
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  10. laveshdixit

    laveshdixit Active Member

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    Why not go with Marico instead of Bajaj Consumer?
     
  11. shabbir

    shabbir Administrator Staff Member

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    I am decided to go with or rather remain in Marico and invest more in it than going with Bajaj Cons.
     
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  12. anandmanik

    anandmanik New Member

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    Bajaj Consumer seems good at cmp 133. Promoter has cleared his pledge though their stake has come down to 38%. Also good dividend of 10%+. Crude oil price drop will benefit the company as one of their raw material liquid paraffin is sourced from oil. One of the leading brands in hair oil segment

    What are your views shabbirji?

    Sent from my Redmi Note 8 using DIY Technical Analysis mobile app
     
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  13. shabbir

    shabbir Administrator Staff Member

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    Good FMCG company but then the company has shown no growth in the past 4 to 5 years.I am keeping a close eye on the company and there has been a new CEO appointed which should help them back to growth ways.