For those who were born in the 1980s…and who take 8-9% growth for granted they should take a lesson in History! Just when I saw the rocking performance of Bajaj Auto – 80% y-o-y growth – and a net profit for the year Rs. 1700 crores! When Rajiv Gandhi came to power he allowed motorcycle manufacturers to set up plants with a capacity of 100,000 vehicles. Sure he got critics saying this is too much, but then Mr. Vasant Sathe had also got brickbats for bringing ‘Colour Tv’ to India!
Now 3 manufacturers sell more than 100,000 vehicles (2-wheelers) a MONTH.
If you see these numbers and are willing to extrapolate, it does not matter whether you have Bajaj Auto (Rs.2200 is a distinct possibility?), Hero Honda, Gillette, Colgate, ITC, Tata Motors, Coromandel Fertilisers, Tata Chemicals, Mahindra Holiday Resorts (to me it looks attractive only at Rs. 450) ….it will not matter. India Rocks, do not sit on the sides..and say “I wish I had invested…in 2020….or when the index is at 48,000 – whichever!!)
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