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Buy Bajaj Electricals; target of Rs 1340: ICICI Direct

ICICI Direct is bullish on Bajaj Electricals has recommended buy rating on the stock with a target price of Rs 1340 in its research report dated August 16, 2022.

August 17, 2022 / 03:21 PM IST
The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

 
 
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ICICI Direct's research report on Bajaj Electricals


Bajaj Electricals' business portfolio spans across consumer products (CP) and EPC (illumination, power transmission and power distribution). CP (appliances, fans, lighting) contributes ~78% to topline. Its premium brands include Morphy Richards and Nirlep. The company has over 2.3 lakh retail touch points across India • The company has been reducing exposure in the EPC business with maximum on executing high margin business.


Outlook


We revise our rating from HOLD to BUY on the stock. We value Bajaj Electrical (BEL) at Rs 1340 using SOTP i.e.45x and 6x PE for CP and EPC respectively on FY24E EPS each.


For all recommendations report, click here


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Bajaj Electricals - 160822 - ic

Broker Research
first published: Aug 17, 2022 03:21 pm