Can anyone tell the fate of Bajaj Auto after the demerger?

Question

What should one do with its Shares? Hold or Sell?

Answer 1

For me: Bajaj Auto is a top-class company in 2 and 3 wheelers. It will continue to be a top class company in the same field. Some hiccups are expected but nothing to worry about.

Stock market has a tendency to over-react to almost all news and rumours. I feel the hammering of the Bajaj shares is in the same over-reaction class. Ultimately you will get shares of demerged firms. The price will continue to be in a volatile range for some time to come.

If you are a long term investor, you need not worry about the workings of Bajaj Auto and the other entities after de-merger. In fact if the price of Bajaj Auto scrip falls again and drastically, I will advice you to enlarge your position on a long term basis.

Best luck.

Answer 2

I think you feared as they fall upto 8% on that demerger day....
But my view is they will arise surely
As they split their company only to increase their profit and to attain a good position in the corporate world.......
I think most of the investors got feared and sold all their shares on that day So only the value fall sharply As PROFIT BOOKING
Be a long term investor for them and they will surely satisfy you after some months.............

Answer 3

Well, I can't tell you what you should do with your shares, but I can tell you 9 analysts have downgraded the stock since the announcement, including UBS, CSFB, and Deutsche Bank. HSBC lowered their price target. Merrill Lynch already had a sell rating on the stock.

Here is an article on it: http://economictimes.indiatimes.com/Markets/Stocks/Stocks_News/Flurry_of_downgrades_greets_Bajaj_Auto_demerger/articleshow/2063177.cms .
Hope this helps!

Answer 4

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