Bajaj Electricals Q1 Results Review - Soft Performance In Challenging Environment: Prabhudas Lilladher

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Bajaj Electricals Ltd. reported soft numbers with sales decline of 1.0% and profit after tax decline of 4.7% YoY on account of muted demand environment and unseasonal rains (impacting summer products). The scheme of engineering, procurement and construction segment’s demerger has been approved by National Company Law Tribunal and accordingly the segment is discontinued. Growth in consumer product mainly came from appliances segment (up 10.1% YoY) and contraction in margin was due to negative operating leverage and investment in growth, which will drive future growth. Bajaj Electricals is expected to see improvement in business from Q3 FY24 with strong festive season and improvement in margin alongside growth, product mix and logistics cost saving. We estimate FY23-25E revenue/Ebitda/profit after tax compound annual growth rate of 8.9%/16.2%/21.4%, excluding EPC segment. Our current estimates are not comparable to earlier estimates, as we have removed EPC business estimates in our future projection given the business demerger. We value the stock at 37 times FY25 EPS (earlier on SOTP, consumer product business value at 35 times) and arrive at target price of Rs 1337 (earlier 1326). Maintain ‘Accumulate’ rating..Click on the attachment to read the full report:.Bajaj Electricals Q1 Results Review - Soft Quarter Amid Weak Demand; Downgrade To 'Neutral': Yes Securities.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bajaj Electricals Q1 Results Review - Soft Performance In Challenging Environment: Prabhudas Lilladher

Consumer product segment grew 2.7%, mainly with 10.1%/12.2% growth in appliances/Morphy Richards

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Bajaj Electricals Q1 Results Review - Soft Performance In Challenging Environment: Prabhudas Lilladher

Consumer product segment grew 2.7%, mainly with 10.1%/12.2% growth in appliances/Morphy Richards

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