Sharekhan's research report on Bajaj Consumer Care
Bajaj Consumer Care Ltd‘s (BCC‘s) Q2FY2024 performance was weak with domestic volumes rising 4% as compared to ours as well as and street expectations of 7-9%. Revenues fell by low single digits in general trade. ADHO volume growth to recover to high single digit to low double digit in H2FY2024. BCC is focusing on double-digit revenues in the near term, largely led by volume growth. Raw material prices to remain benign and support margins. Pick-up in sales volume will boost OPM in H2FY24. BCCL eyes OPM of 18% in the near term.
Outlook
Stock has corrected by 16% from its high and trades at 19x/16x/14x its FY2024E/25E/26E EPS. We maintain a Buy on the stock with an unchanged PT of Rs. 280.
For all recommendations report, click here
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
