HEM Securities has maintained buy rating on Bajaj Electricals with target price of Rs 603, implying upside of 33%, in its May 29, 2008 report. "The company has achieved tremendous growth of 39% in appliances, about 30% in lighting and fans and about 20% in luminaries and in engineering projects. The company expects sales to grow by 26% in FY09, banking on higher demand for lighting equipment from offices, malls and commercial complexes. With strategic partnerships with renowned international players, the company is moving a step ahead in providing integrated appliances and luminary solutions. The E&P business unit of the company is expected to ponder on newer opportunities created with the growing infrastructure base in the country. Bottom-line of the company has grown with a CAGR of 74.91% over a period of three years. Presently, the stock is trading at Rs 453 which is at times to its 4.51 book value and 10.71 times to its earnings. We initiate a BUY signal on the stock keeping in mind the immense posi-tives offered in medium to long term investment horizon with a target price of Rs 603, expecting an appreciation of approximately 33%" according to HEM securities report.
