Buy Bajaj Corp; target Rs 268: Firstcall Research
Brokerage house Firstcall Research is bullish on Bajaj Corp and has recommended buy rating on the stock with a target price of Rs 268 in its August 10, 2013 research report.
August 19, 2013 / 18:38 IST
Firstcall's research report on Bajaj Corp
"Bajaj Corp is a leading player in the hair & care segment. The net sales of the company increased by 23.18 percent in Q1 FY14 compared to Q1 FY13. The net profit of Bajaj Corp is increased by 24.9 percent from Rs. 376.20 mn to RS. 470.10 mn in Q1 FY14. The net profit margin has improved slightly from 27.25 percent to 27.65 percent. The EBDITA in Q1 FY14 rose by 23.95 percent from Rs. 389.20 in Q1 FY13 to 482.40 in Q1 FY14. The EBDITA margin was almost flat and rose by a meager 18 basis points.""At the current market price of Rs.243.00, the stock P/E ratio is at 18.07 x FY14E and 15.44 x FY15E respectively. Earnings per share (EPS) of the company for the earnings for FY14E and FY15E are seen at Rs.13.44 and Rs.15.74 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 20 percent and 25 percent over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 13.27 x for FY14E and 11.19 x for FY15E. Price to Book Value of the stock is expected to be at 6.64 x and 5.94 x respectively for FY14E and FY15E. We expect the company to perform well in the coming quarters and consolidate its position in the hair oil industry. Thus we recommend 'BUY' with a target price of Rs 268 for Medium to Long term investment," says Firstcall Research report. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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