Prabhudas Lilladher's research report on Bajaj Electricals
CP segment grew 8.4% YoY (accounted for 79% revenue), with strong growth across all products segment except fans which grew in low single digits in Q4FY25. Expansion in CP EBIT margin was supported by volume growth as well as gross margin expansion. Lighting revenue was flat, impacted by a decline in the professional lighting due to delays in order execution. BJE has guided CP EBIT margin of 6% for FY26 and aims to achieve double digit EBIT margin in next three years. Company has recorded an exceptional item as a one-time gain of Rs301.3 mn from the liquidation of immovable properties. The company targets gross margin improvement through VAVE initiatives and price hikes with a cost savings of 2-3%.
Outlook
We estimate FY25-27E revenue/EBITDA/PAT CAGR of 11.1%/18.6%/38.4%. We tweaked Bajaj Electricals (BJE) FY26/27E earnings. We value the stock at 34x FY27 EPS and arrive at TP of Rs641 (earlier Rs552). Retain ‘HOLD’ rating.
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