Bajaj Electricals reported a subdued performance in Q2 FY26 with revenue at Rs 11 billion, reflecting a marginal ~1% YoY decline, largely due to unseasonal rains that dampened demand for seasonal products. The consumer products segment witnessed a ~4.1% YoY decline, impacted by weakness in the fans category and a double-digit drop in air coolers; however, ceiling fans stood out with strong double digit value growth, driven by premiumization and a richer product mix.
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Nirmal Bang Report
We maintain our Hold rating for Bajaj Electricals Ltd. with a revised target price of Rs 504, valuing the stock at 27x Sep-27E EPS, at a ~60% discount to its five-year historical average.
While we acknowledge the company's ongoing efforts in premiumization and cost optimization, we remain cautious given persistent near-to-medium term headwinds, particularly price erosion in the consumer lighting segment and high exposure to non-premium segments like fans.
These factors warrant a measured approach, despite encouraging long-term initiatives.
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