Bajaj Consumer Q1 Review - Execution Improvement With Macro Recovery To Drive Re-rating: ICICI Securities

Operating margin expansion driven by cost savings.

<div class="paragraphs"><p>Bajaj Almond Drops bottles in a production line manufactured by Bajaj Consumer Care. (Source: Company website)</p></div>
Bajaj Almond Drops bottles in a production line manufactured by Bajaj Consumer Care. (Source: Company website)

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ICICI Securities Report

Bajaj Consumer Care Ltd. continues to improve its growth trajectory with gradual recovery in in hair oil market (largely driven by urban markets). almonds drops hair oil revenue growth of 9% YoY with broad based growth across stock keeping units is encouraging (with continued media investments).

We like the continued improved performance in organised trade. Gross margins were largely stable. Operating profit margin expanded due to cost saving initiatives. We believe the building blocks of-

  1. expanding in popular hair categories of amla and coconut and

  2. developing premium brand/products are steps in the right direction.

We like its focus on investing in both brand building and distribution expansion. We believe improvement in macros and execution may drive multiple re-rating. Maintain 'Buy'.

Click on the attachment to read the full report:

ICICI Securities Bajaj Consumer Q1FY24 Results.pdf
Bajaj Consumer Q1 Review - Scope For Further Gross Margin Expansion; Upgrade To Accumulate: Dolat Capital


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