As of today, I have switched my 4% position from Bajaj auto to Maruti Suzuki. Additionally, I have deployed the 1.5% cash into two exisiting positions (1% in Jubilant ingrevia taking its position size to 2%; 0.5% in Manappuram finance taking its position size to 4%). Reason for switch to Maruti is the superior growth profile of 4-wheelers compared to 2-wheelers. Also, bajaj auto is trading closer to fair valuations compared to maruti (in my assessment). Below is my speculation for maruti.
FY20 sales: 75’660 cr., @12% growth (on low corona base): FY25 sales: 133’339 cr., I want to exit at >2.5 EV/sales; EV: 333’348 cr.; Cash ~ 40’000 cr. (this was >35’000 cr. in FY19); Mcap ~ 373’348 cr. (share price: 12360).
| Companies | Weightage |
|---|---|
| HCL Technologies Ltd. | 6.00% |
| I T C Ltd. | 6.00% |
| PI Industries Ltd. | 6.00% |
| Power Grid Corporation of India Ltd. | 6.00% |
| Larsen & Toubro Ltd. | 6.00% |
| Ajanta Pharmaceuticals Ltd. | 4.50% |
| Kolte-Patil Developers Ltd. | 4.50% |
| Ashiana Housing Ltd. | 4.50% |
| NESCO Ltd. | 4.50% |
| InterGlobe Aviation Ltd. | 4.00% |
| Maruti Suzuki India Ltd. | 4.00% |
| Suprajit Engineering Ltd. | 4.00% |
| Manappuram Finance Ltd. | 4.00% |
| Housing Development Finance Corporation Ltd. | 3.00% |
| HDFC Asset Management Company Ltd | 3.00% |
| Reliance Nippon Asset Management Co | 3.00% |
| CARE Ratings Ltd. | 3.00% |
| Lupin Ltd. | 2.00% |
| Avanti Feeds Ltd. | 2.00% |
| Cera Sanitaryware Ltd | 2.00% |
| Infosys Ltd. | 2.00% |
| National Aluminium Co. Ltd. | 2.00% |
| NATCO Pharma Ltd. | 2.00% |
| Wonderla Holidays Ltd. | 2.00% |
| Maithan Alloys Ltd. | 2.00% |
| Cadila Healthcare Ltd. | 2.00% |
| Inox Leisure Ltd. | 2.00% |
| Jubilant Ingrevia Ltd | 2.00% |
| Indian Energy Exchange Ltd. | 1.00% |
| Ashok Leyland Ltd. | 1.00% |
| Cash | 0.00% |