Add Bajaj Electricals, target price Rs 1200: Centrum Broking

Centrum Broking has add call on Bajaj Electricals with a target price of Rs 1200. The current market price of Bajaj Electricals Ltd. is Rs 1156.4. Time period given by analyst is one year when Bajaj Electricals Ltd. price can reach defined target.

Bajaj Electricals Ltd., incorporated in the year 1938, is a Mid Cap company (having a market cap of Rs 13280.09 Crore) operating in Consumer Durables sector.

Bajaj Electricals Ltd. key Products/Revenue Segments include Consumer Durables, Contract Revenue, Scrap and Other Operating Revenue for the year ending 31-Mar-2022.



Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 1237.41 Crore, down -8.70 % from last quarter Total Income of Rs 1355.34 Crore and up 42.99 % from last year same quarter Total Income of Rs 865.37 Crore. Company reported net profit after tax of Rs 41.19 Crore in latest quarter.


Investment Rationale
The brokerage expects BJE to post 17% revenue CAGR over FY22-24E. Healthy margin expansion in Consumer Products and turnaround in EPC will lead to robust 63% EPS CAGR, on a low base. However, with limited upside on current valuations, it downgrades to ADD.

Promoter/FII Holdings
Promoters held 62.96 per cent stake in the company as of 30-Jun-2022, while FIIs owned 10.51 per cent, DIIs 12.41 per cent.