The stock trades at 16.3x FY21e P/E, a ~50 percent discount to peers. We upgrade our rating to a Buy, with 35 percent potential.
We expect Budget to be more than a routine Vote On Account. The government may make announcements in order to please rural voters and the urban middle class. These could include cash transfers and some changes in the income tax slabs.
This is the verbatim transcript of Bajaj Corp’s companies management call with analysts.
Key thing to watch for the company is volume offtakes from rural areas and consumer response post-relaunch of ADHO.
JM Financial is bullish on Bajaj Corp has recommended buy rating on the stock with a target price of Rs 475 in its research report dated October 23, 2018.
Its total income during the period under review was at Rs 219.84 crore, up 3.65 per cent, against Rs 212.08 crore in the year-ago quarter, Bajaj Corp said in a BSE filing.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 48.5 points or 0.44 percent. Nifty futures were trading around 11,12-level on the Singaporean Exchange.
On the technical front, 10,920-10,950 spot levels is a strong support zone and expect Nifty to expire in the band of 11,000-11,200 levels.
Consumption sectors (FMCG, durables, autos), though on a soft base, post noticeable volume growth for a consecutive quarter.
Greater clarity on the sustainability of this pick-up will emerge once more rural wages data is available.
JM Financial bullish on Bajaj Corp has recommended buy rating on the stock with a target price of Rs 495 in its research report dated July 13, 2018.
Dolat Capital recommended accumulate rating on Bajaj Corp with a target price of Rs 461 in its research report dated July 16, 2018.
Edelweiss recommended hold rating on Bajaj Corp with a target price of Rs 520 in its research report dated July 16, 2018.
Positives for the company from the earnings result includes growth revival in rural areas and improving distribution reach. Company’s key challenge comes from the changing hair oil industry dynamics which includes competition from the low cost manufacturers.
CD Equisearch recommended accumulate rating on Bajaj Corp with a target price of Rs 505 in its research report dated May 23, 2018.
Bajaj Corp is currently trading at 30.4 times FY19e earnings which is towards the lower end of the FMCG sector valuation range.
Its total income during the period under review stood at Rs 222.45 crore as against Rs 206.85 crore in the corresponding quarter a year-ago," Bajaj Corp Ltd said in a BSE filing.
Bajaj Corp’s quarterly sales rose 5.9 percent YoY driven by a 5.2 percent volume growth (vs. -6.5 percent in Q3 2017). Domestic business witnessed a volume growth of 8.2 percent YoY (8.8 percent value growth). However, sales in international business was down 44 percent, in value terms, led by weakness in MENA and Nepal business.
Dolat Capital recommended accumulate rating on Bajaj Corp with a target price of Rs 540 in its research report dated January 15, 2018.
The company, which makes hair and skin care products, has said it plans to tap whitespace opportunities by enhancing its innovative pipeline.
Edelweiss recommended hold rating on Bajaj Corp with a target price of Rs 543 in its research report dated January 12, 2018.
The rural demand is expected to come back by April, May post the Rabi crop, government initiatives in terms of MSP & other likely announcements in the Budget, said Sumit Malhotra, MD, Bajaj Corp.
JM Financial is bullish on Bajaj Corp has recommended buy rating on the stock with a target price of Rs 520 in its research report dated January 11, 2018.