2 wheelers stocks should do very well in the forseeable future due to need for social distancing which is virtually impossible in public transport.
there is a good chance of hero motocorp getting rerated which will benefit majestic auto .
In my opinion majestic auto mgmt will seek to ride this out and will definitely pare down down a significant portion of its debt by selling off some of hero moto holding (due to all the economic shocks witnessed )
. current value of its holding of hero moto cmp of 2663 is 245 crores.
What i am guessing is the massive income tax paid this year is to do with the land sale . i will post more details once the annual report is released.
Since they have Big IT clients(tech mahindra for eg ) in their rented out property , corona impact should be minimial .Moreover IT companies are doing great .
Disclosure :
i am invested in majestic auto . my opinions may be biased. i am not a sebi registered investment advisor. this is not investment advice .Please do your due diligence before investing