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ICICI Securities Report
Bajaj Consumer Care Ltd. posts a mixed quarter – margin pressure continues albeit with some improvement in topline trajectory. We note that gross margin print of 55% is below the normalised level of 66-67% while Q1 Ebitda margin came in at 14.5%. The company highlighted-
continued subdued rural category performance and
good recovery in modern trade and increasing salience of e-commerce.
We believe the building blocks of expanding in popular hair categories of Amla and Coconut and developing premium brand/products are steps in the right direction.
We like its focus on investing in both brand building and distribution expansion. The problem is that Bajaj Consumer's expansion focus has come at a time when the core started to struggle (both volumes and margins), stressing the P&L.
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