RESPONSE TO READER'S QUERY: @ANON 6/10/2011; BAJAJ CORP

TECHNICALLY, the Stock has strong support at 97 levels and then at 90. On the upside, the first resistance is at 107 and then at 117; confirmation of uptrend only if it trades consistently above 117.

The FUNDAMENTALS are okey-dokey, nothing spectacular; the topline growth last Quarter has been impressive but overall Net Profit growth not so; the Brands owned by the Company are good but in a crowded niche where volume growth would almost always be at the expense of Operating Margins; sustainability of topline growth in the long term is also a bit of a question mark. However, having said all this, the main positive is the relatively cheaper valuations that the Scrip is available at if compared with other top drawer FMCG Scrips. At CMP 101 the Scrip is trading at 13x FY12E and about 10x FY13E which though not dirt cheap is not airy-fairy either.

Therefore,in my opinion, though there are better scrips in the FMCG space, but the sheer benefit of current valuations makes the Scrip a BUY at CMP 101 and all dips, for the long term investor.