Bajaj Consumer Care Ltd., incorporated in the year 2006, is a Mid Cap company (having a market cap of Rs 3828.67 Crore) operating in FMCG sector.
Bajaj Consumer Care Ltd. key Products/Revenue Segments include Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 225.02 Crore, down -11.84 % from last quarter Total Income of Rs 255.24 Crore and up 8.11 % from last year same quarter Total Income of Rs 208.14 Crore. Company reported net profit after tax of Rs 48.90 Crore in latest quarter.
Investment Rationale
BCCL’s winning combination of a) being debt free, b) being cash rich (~Rs 600 Cr) and c) with negative working capital indicates the company is well financed with strong business model in place. Even after taking into account, the higher dependence on single category, we feel the company trades at extremely unfair discount to its FMCG peers. BCCL is also a good acquisition candidate for large FMCG players / PE players at the current valuations. It currently trades at 14.3X FY23E compared to ~45X (ex-ITC) for the industry, providing ample margin of safety.
Promoter/FII Holdings
Promoters held 38 per cent stake in the company as of Sept 30, 2020, while FIIs held 24.2 per cent, DIIs 17.7 per cent and public and others 20.1 per cent
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