Bajaj Consumer Q1 Review — Dolat Capital Maintains ‘Reduce’ Despite Margin Upside
Despite a minor quarterly beat on margins and continuing strategic efforts like route-to-market overhauls, Dolat Capital sees limited upside with only 2% return potential to its revised target price
Bajaj Consumer has completed the acquisition of Vishal Personal Care Ltd., a strategic move to diversify and strengthen product portfolio. The acquired entity posted Rs 155 million revenue in Q1 with positive, albeit modest, operating margins.
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
Dolat Capital has retained its 'Reduce' stance on Bajaj Consumer Care while increasing the target price from Rs 181 to Rs 230, on the back of gradual improvement in profitability and valuation rollover to FY27 estimates. However, fundamental concerns around topline growth and intense competition in the premium hair oil sector persist.
Almond Drops Hair Oil, Bajaj Consumer’s mainstay brand, recorded flat volumes in Q1 FY26, with growth primarily driven by a significant rise in sachet sales, even as mid and large-sized pack sales remained tepid. This reflects weak structural demand in premium price points.
Despite subdued revenue, Bajaj Consumer delivered a 120bps improvement in Ebitda margin (16.7%) due to a favorable product mix, reduced raw material costs, and trade rationalisation—offsetting heightened investments in Project Aarohan.
Risks remain elevated in discretionary demand and competitive intensity.
Click on the attachment to read the full report:
ALSO READ
Lemon Tree Shares Upgraded To 'Buy' By Dolat Capital Post Healthy Q1 Results — Check Target Price
DISCLAIMER
This 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.
