Bajaj took price moderate price hikes during the quarter for its new products. For the quarter company brand investment for “Built to Shine” campaign. Despite moderate growth across product categories, the company posted healthy CFO of Rs 0.83 billion, mainly led by working capital optimisation.
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Nirmal Bang Report
While topline was in line with our estimate, Ebitda margin was significantly above our estimate by 237 bps due to improvement in GM driven by price hikes.
For the quarter Domestic Appliances and MR showed double digit growth while Fans and kitchen appliance remained flattish.
Bajaj took price moderate price hikes during the quarter for its new products. For the quarter company brand investment for “Built to Shine” campaign.
Despite moderate growth across product categories, the company posted healthy CFO of Rs 0.83 billion, mainly led by working capital optimisation. The management cited an encouraging start for Q4 FY25 on the back of strong festive demand + a pickup in rural demand (30% of topline contribution).
Premiumisation continues to play out, with competition intensity increasing in the mass segment.
We maintain Sell with a revised target price of Rs 605, valuing it at 25 times on Dec'26E EPS.
While continued expansion into premium products and focused efforts on reducing cost inefficiencies are positives, near-to-medium term risks prevail in terms of price erosion in CL and higher exposure to non-premium products – especially Fans.
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