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Buy Bajaj Consumer Care: target of Rs 355: Sharekhan

Sharekhan is bullish on Bajaj Consumer Care has recommended buy rating on the stock with a target price of Rs 355 in its research report dated April 20, 2021.

April 22, 2021 / 03:30 PM IST
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Sharekhan's research report on Bajaj Consumer Care

Bajaj Consumer Care Limited (BCC) posted strong performance in Q4FY2021 with revenue growing by ~40% to Rs. 246crore,OPM expanded by 24.7%, and PAT grew by 120% to Rs. 53.9crore. April was a good month with the rural market performing well. However, management is cautious about the coming months. Gross margin pressure is likely to sustain in Q1FY2022 but will get stabilised in the quarters ahead (BCC took price hike of 2.5% and will curtail on cost). Improving penetration of Almond Drop Hair Oil (ADHO) brand, gaining market share in the amla category, adding profitable products in the portfolio, and distribution enhancement remain medium-term growth strategy. The company is focusingon improving OPM in upwards of 25% in the near term. We have reduced our earnings estimates by 3% for FY2022, while maintaining them for FY2023.


The stock is trading at attractive valuations of 15.7x its FY2023E earnings. We maintain Buy witha revised PT of Rs. 355.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

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first published: Apr 22, 2021 03:30 pm

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