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Bajaj Consumer Gets Rating Downgrade After Q1 From Dolat Capital — Check Revised Target Price

Following the recent run-up in the stock price, Bajaj Consumer's risk-reward has turned less favorable with near-term positives already reflected in valuations.

Bajaj Consumer Gets Rating Downgrade After Q1 From Dolat Capital — Check Revised Target Price
Bajaj consumer reported revenue growth of 24.9% YoY driven by broad-based strength across businesses.
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Bajaj Corp Ltd.
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NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Healthy volume-led growth, improving profitability and strong execution reinforce confidence in Bajaj Consumer Care Ltd.'s earnings outlook.

However following the recent run-up in the stock price, the risk-reward has turned less favorable with near-term positives already reflected in valuations. Hence, the brokerage has downgraded the stock to 'Reduce' with a revised target price of Rs 685, at 30 times H1 FY29E EPS.

Bajaj consumer reported revenue growth of 24.9% YoY driven by broad-based strength across businesses. Domestic ADHO business grew in 30s led by early teens adj volume growth, while international business witnessed a sharp recovery led by double-digit growth in Nepal and Bangladesh and improved performance across the rest of the markets.

Gross margin stood at 61.8% despite input cost volatility, while Ebitda margin was at 24.4% aided by calibrated pricing actions, operating leverage and cost discipline.

Management expects gross margin to remain under pressure in Q2 before easing in H2 FY27 and reiterated its aspiration to operate within low-to-mid 20% Ebitda margin range.

Click on the attachment to read the full report:

Dolat Capital Godrej Consumer Q1 Review.pdf
VIEW DOCUMENT

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