Insider buys during Q2 FY18.
More promoter buys:
|500490||BAJAJ HOLDINGS & INVESTMENT LTD.||JAMNALAL SONS PVT LTD||Promoter||18943660 (17.02)||Equity Shares||1,400||3806760.00||Acquisition||18945060 (17.02)||21/05/2018 21/05/2018||Market Purchase||24/05/2018|
|500490||BAJAJ HOLDINGS & INVESTMENT LTD.||JAMNALAL SONS PVT LTD||Promoter||18945060 (17.02)||Equity Shares||3,48,500||998177442.00||Acquisition||19293560 (17.34)||22/05/2018 22/05/2018||Market Purchase||24/05/2018|
I am watching this stock for last 6 months and I have noticed that promoter is continuously buying shares from open market. So, I am not able to interpret that whether as an investor it is a good thing for me and bad. I have invested a small amount in this stock just for tracking purpose.
Promoter Buying is a good thing and shows conviction. It might mean that the promoter thinks the market price is reasonable or cheap. But we cant say that for sure.
Can someone answer this query? I am also looking for answers regarding holding companies especially Bajaj holdings.
Holding companies have one dominant objective and that is to safeguard the promoters’ grip over the underlying companies. They are not investment vehicles also.Main income is dividend income.
So book value and intrinsic value of the holding company has little meaning for the investor. The potential cash flow is possible but not probable,since it will remain unrealised,because the underlying shares will never be sold.
promoter buying of holding company shares is a good thing only on paper, since it is only another way of tightening the control of the promoters’ over the underlying companies.
you are right that even when shares are liquidated, the minority shareholders seldom benefit,since there is no pass through to the minority shareholders.
As to why such limited purpose holding companies are listed,perhaps that is to provide a legal way to retain and increase control of the promoters,at the cost of the minority shareholders,while also raising relatively cheaper-cost funds for doing so.
Can someone knowledgeable on valuation of holding companies give some wisdom or point to any place where we can understand this? The huge discount doesn’t make sense
I agree to your point that holding companies are not best investments but still they seem to do well like Tata investment and even Bajaj holdings…plus dividend is also good. Why do they do well at all if minority shareholders pay all cost , who buys them apart from promoters then and why? Just trying to understand thought process of non promoter buyers…
Pls note in the above article that the abolition of dividend distribution tax “may” have a positive impact on holding companies.
Bajaj Holdings and Investment Limited - Strong holding company with a deep discount to its intrinsic value
Disclosure: I do hold the company in my portfolio.
I had extracted data from latest annual report, and made a google sheet to track current investment value, I am sharing it here.
Hope it will benifit someone.
This sheet will update automatically every 5 mins.
Thanks, @bdvravariya for sharing it!
Isn’t Bajaj Holdings and Investment Limited holding 39.16% Bajaj Finserv and 33% Bajaj Auto Limited?
I took the data from latest annual report, I think, maybe they had calculated total shareholding also adding holdings through subsidiaries. Take for example, Maharashtra Schooters is a subsidiary of Bajaj Holdings, which also holds shares of Bajaj Auto, Bajaj Finserv, Bajaj Finance and Bajaj Holdings
Thank you Sir, can you share the latest one if you have ?
This is very helpful.
Weights and few other fields are not getting populated. Can you recheck if your sheet is still working good.
Also do you update this on quarterly basis?