Bajaj Consumer Q4 Results Review - Favorable Base For Ensuing Quarters: Dolat Capital

Dolat Capital Report

Bajaj Consumer Care Ltd.’s Q4 FY23 results were above our estimate. While overall hair oil market de-grew by 0.5/0.8% in value/volume terms in Q4 FY23, the company witnessed a healthy value and volume growth.

As urban markets have maintained growth pace and rural has improved sequentially, general trade posed 6% increase – strong sequential improvement.

E-com reported 63% growth, higher than any other channel. Modern trade also posted sales growth of 52% during Q4 FY23.

As the commodity prices have softened sequentially, there is a scope for improvement in gross margin.

Bajaj Consumer Care is likely to maintain advertising and promotion spends at the current levels (in absolute terms).

We remain cautious on the premium hair oil category considering its discretionary nature and increased competitive intensity.

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