2nd Investment- Bajaj Auto and Hero Motorcorp

6@ 25350 Bajaj Auto

10@24739 Hero April 2023

Why: Hero

Sales for last 10 years flat and co trading @1.5 times sales.

Co still market leader in economy bikes.will do will once rural economy picks up and company will do well. 

Dividend yield @3% ,full of pessimism about EV and others. But once EV are expensive and for economy bikes HEro still leader.

Target:double 3-5 yrs

Worst case: same price .

Bajaj Auto

Same as HERO.

Market leader in 3 wheeler and upgradation from spl vehicle <HERO> to somewhat time premium which they cater with pulsar 125 and 150.range.Againarket leader.

Last 10 years sales growth in single digit and hence valuation os comforting with 3-4% dividend yield.

Best case: double

Worst case: 20% lower in 3 years

1st Investment HDFC Bank

30 shares@ 46500 March 2023

Why:

Leadership change and merger hangover and other  pvt banks like icici and axis bank doing well ,valuation has softened but still loans and deposit growing @20%. This 🐘 post merger will still compound @ 20%.and valuations will be historical valuation once merger is done and how RBI and bank goes about in SLR,priority lending.