Bajaj Consumer Care Ltd., incorporated in the year 2006, is a Mid Cap company (having a market cap of Rs 4492.60 Crore) operating in FMCG sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 255.24 Crore, down -.92 % from last quarter Total Income of Rs 257.61 Crore and up 36.40 % from last year same quarter Total Income of Rs 187.13 Crore. Company reported net profit after tax of Rs 54.68 Crore in latest quarter.
Investment Rationale
The brokerage increases earnings estimates by 6% for FY23; modelling revenue / EBITDA / PAT CAGR of 10% / 9% / 7% over FY2021-23E. It reiterates BUY with DCF-based revised target price of Rs400 (was Rs350 earlier). At the target price, the stock will trade at 23x P/E Mar’23E. Key downside risks are over-reliance on a single brand – ADHO and keyman risk (Mr. Jaideep Nandi, MD, who’s driving a cultural transformation within Bajaj Consumer and the turnaround).
Promoter/FII Holdings
Promoters held 38 per cent stake in the company as of Dec 30, 2020, while FIIs held 25 per cent, DIIs 16.8 per cent and public and others 20.2 per cent.
