Bajaj Electricals Shares Rise Despite Q3 Profit Decline

Bajaj Electricals Ltd. shares rose by over 4% on Tuesday, following the release of the company's mixed third-quarter earnings report. Despite a decline in net profit, the company registered revenue growth and improved Ebitda margins seems to have contributed to the positive market reaction.

In the third quarter, Bajaj Electricals reported a 5% year-on-year increase in consolidated revenue, reaching Rs 1,290 crore compared to Rs 1,228 crore in the same period last year.

However, the company's net profit fell by 10.7% to Rs 33.4 crore, down from Rs 37.4 crore in the year-ago period. On a positive note, the earnings before interest, taxes, depreciation, and amortisation rose by 51.7% to Rs 87.4 crore, up from Rs 57.6 crore. Additionally, the Ebitda margin improved to 6.8% from 4.7% in the same quarter last year.

Despite the decline in net profit, the market responded positively to the company's strong revenue growth and improvement in Ebitda margins. The share price of Bajaj Electricals rose by over 4.13%

The scrip rose as much as 4.13% to Rs 749 apiece. It pared gains to trade 2.18% higher at Rs 734 apiece, as of 1:48 p.m. This compares to a 1.32% advance in the NSE Nifty 50 Index.

It has fallen 32% in the last 12 months. Total traded volume so far in the day stood at 2.8 times its 30-day average. The relative strength index was at 44.78.

Out of 19 analysts tracking the company, 10 maintain a 'buy' rating, five recommend a 'hold,' and four suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 28.7%