Bajaj Consumer Care Q3 Results Review: Centrum Retains 'Buy', Lowers Target Price — Here's Why

Bajaj Consumer's revenue momentum remained subdued in Q3 due to slowdown in urban consumption while rural has outperformed. We expect, mid-single digit volume growth led by bounce back in Almond Drop Hair Oil portfolio in FY26 whereas Non-ADHO portfolio continued to perform better led by Coconut and Amla portfolio..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..Centrum Broking Report.Bajaj Consumer Care Ltd.’s revenue/Ebitda/PAT declined by 2.4%/32.4%/30.4% YoY. Almond Drop Hair Oil volume in Q3 declined by low single digit, yet ADHO's large packs continue to perform better than sachets. General trade channel declined in high single digit while alternative channel grew 22% in Q3. International business grew 23%, driven by strong performances in Bangladesh followed by ROW (+12%) and Nepal (+5%), while GCC and Africa witnessed steady growth. Gross margins declined to 52.0% (-149 bps) on lower margin in the coconut oil portfolio. Ebitda margins to 9.8% (-432 bps) due to higher employee cost (+9.5%) and other expenses (+2.8%). Bajaj Consumer has acquired Banjara’s -south India based brand in Personal Care for Rs 1.2 billion (two times on trailing twelve months EV/sales) with major rationale are:Wider portfolio with strong play in Naturals Hair & Skin Care (1.5x growth on BPC);Distribution Synergy –as Bajaj Consumer has been relatively weak in South India while Banjara’s products could help penetrate the HSM market; andScaling up Banjara’s products by leveraging Bajaj Consumer’s expertise. .With weaker 9M FY25, we cut earnings and retained Buy with revised DCF-based target price Rs 200 (implying 19.2x on FY27E EPS)..Click on the attachment to read the full report:.JSW Energy Can Rally 60% Says Motilal Oswal, Reiterates 'Buy' On The Stock — Here's Why.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bajaj Consumer Care Q3 Results Review: Centrum Retains 'Buy', Lowers Target Price — Here's Why

The brokerage reckons Bajaj Consumer’s focus on penetration led growth in HSM, building non-ADHO portfolio and scale up of international business could yield good results in FY26.

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