1. At a Glance
A company named after scooters that doesn’t really make scooters anymore. Instead, it sits on ₹34,500 Cr in assets, mostly Bajaj Holdings & other Bajaj Group cos, generating passive income like a retired landlord. ROE? Less than 1%. But stock price? Up 55% YoY. Welcome to the great Indian holding company puzzle.
2. Introduction with Hook
If passive income were a publicly listed stock, it would be Maharashtra Scooters Ltd (MSL).
Imagine leasing out your garage for ₹1 Cr/month and still pretending you’re “in manufacturing.” That’s MSL. This isn’t your typical business—it’s a Bajaj-controlled cash vault, with nearly 98% of its value tied up in investments, mainly in Bajaj Finserv, Bajaj Auto, and Bajaj Holdings.
- Market Cap: ₹16,669 Cr
- Book Value: ₹27,005/share
- CMP: ₹14,574 — trading at just 0.54x Book Value
- Dividend Yield: 0.96%
- ROE: Anemic 0.61%
A value investor’s wet dream… or a liquidity trap?
3. Business Model (WTF Do They Even Do?)
Technically, Maharashtra Scooters makes dies, jigs, fixtures, and die casting components for the auto industry. In reality?
- It’s an unregistered Core Investment Company (CIC).
- 90%+ of assets are in Bajaj group shares and debt instruments.
- Generates bulk of earnings from dividends, interest, and fair value changes.
MSL is what happens when a manufacturing firm evolves
