Hold Bajaj Electricals target of Rs 901 Prabhudas Lilladher

Prabhudas Lilladher recommended hold rating on Bajaj Electricals with a target price of Rs 901 in its research report dated November 09, 2024.

Broker Research

November 11, 2024 / 15:51 IST

hold

26 Aug, 2025 12:21

Volume

Todays L/H

Prabhudas Lilladher's research report on Bajaj Electricals

We downward revise Bajaj Electricals (BJE) FY25/26/27E earnings by 15.6%/10.2%/8.1% factoring in the lower revenue growth in CP segment and margin contraction on account of higher expenses related to R&D, new product development, advertisement, etc. Revenue grew +0.5% YoY and PAT dropped 52.6% YoY amid weak performance in CP segment (accounts for 78% revenue) due to soft demand in appliances (flattish YoY) and decline in fans. Lighting revenue declined with consumer lighting, while professional lighting continued to grow YoY. The reversal of warranty provision considered in Q2FY24 resulted in 210bps contraction in EBITDA margin to 4.6%. BJE expects near -term improvement in consumer demand due to festivals and green shoots visible in rural demand.

Outlook

We estimate FY24-27E revenue/EBITDA/PAT CAGR of 10.7%/21.1%/29.7%. We value the stock at 35x FY27 EPS and arrive at TP of Rs901 (earlier Rs980). Maintain ‘HOLD’ rating.

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