Bajaj Consumer on the rise
Bajaj Consumer on the rise
Bajaj Consumer Care is trading higher on the BSE, rising 1.61% or Rs. 7 to Rs. 442.25, against its previous close of Rs. 435.25. The stock opened at Rs. 441.15 and touched an intraday high of Rs. 445.90. Market depth showed more buyers than sellers, with buy orders of 22,867 shares against sell orders of 19,025 shares, indicating modest buying support.
Trigger
- Strong Q2FY27 results: Consolidated revenue increased 25.5% YoY to Rs. 332.83 crore.
- EBITDA surged 71% YoY to Rs. 83.3 crore from Rs. 48.7 crore.
- EBITDA margin expanded to 25%, against 19% a year earlier.
- Net profit jumped 66% YoY to Rs. 70.15 crore from Rs. 42.29 crore.
- Almond Drops Hair Oil domestic business recorded over 30% revenue growth, supported by strong double-digit unit volume growth.
- Aarohan 2.0 distribution expansion and growth in the coconut-based products portfolio remain key strategic priorities.
The stock's recent strength reflects improving investor confidence in the company's earnings recovery, with profits growing considerably faster than revenue. Strong demand for Almond Drops Hair Oil, particularly smaller price-point packs, and expansion of its coconut-based product portfolio have supported business growth. The company has also benefited from improved operating efficiencies, translating into healthier margins.
Another important development is the company's renewed focus on distribution expansion through Aarohan 2.0, targeting wider direct retail reach and greater productivity across its existing network. Management is aiming for high-teen revenue growth in FY27, supported by product innovation, increased penetration and improvements in the general trade and organised retail channels.
However, the sequential performance was relatively subdued, with revenue declining 2.6% QoQ and net profit slipping marginally from Rs. 70.75 crore in Q1FY27. Elevated input costs, particularly light liquid paraffin, refined mustard oil and copra, remain a concern. Management is considering pricing measures to offset these pressures.
At the current price, the stock trades at a consolidated PE of approximately 23 times, with a market capitalisation of Rs. 5,799 crore.