Bajaj Electricals - Lighting To Support Growth In Medium Term: Nirmal Bang

Nirmal Bang Report

We recently met the CFO and the IR team at Bajaj Electricals Ltd.

While Morphy Richards continues to witness good growth, demand for kitchen appliances has not picked up as expected.

Baja Electricals strategy – going forward – would be to advertise with focus on product durability and better aesthetic appeal. It currently has no brand ambassador.

The company is working on the logistical challenges and has been able to address this issue to some extent. Supply chain issues in the current quarter have been relatively lower.

Revenue contribution from new products has increased significantly and it is expected to rise further over the next 18-24 months.

We maintain Sell on Bajaj Electricals with a revised target price of Rs 870, valuing it at 32 times on Sept’26E EPS.

While continued expansion into premium products and focused efforts on reducing cost inefficiencies are positives, near-to-medium term risks prevail in terms of intense competition in fans, higher exposure to non-premium products and tepid demand in kitchen appliances.

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