Hold Bajaj Electricals; target of Rs 1275: ICICI Direct

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 to the EPC business with maximum focus on executing high margin business.

Outlook

We revise our rating on the stock from BUY to HOLD. We value Bajaj Electrical (BEL) at Rs 1275 using SOTP i.e. 40x and 6x PE for CP and EPC, respectively, on FY24E EPS each.

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Bajaj Electricals - 10 -11-2022 - icici