Buy Bajaj Corp, target Rs 463: Reliance Securities

Reliance Securities has a buy call on Bajaj Corp with a target price of Rs 463.

The current market price of Bajaj Corp is Rs 387.

In a report, Reliance Securities says, "Considering the Company’s market leadership and pricing power, coupled with attractive valuations, we maintain our BUY recommendation on the stock with a Target Price of Rs 463."

Bajaj Corp closed 2.3 per cent up in trade at Rs 390 compared to 1 per cent increase in the benchmark Nifty.

The company is the market leader in light hair oil market with volume share of 58 per cent.

Although 4QFY17 numbers were impacted by demonetization and weak consumer demand, we expect recovery in the coming quarters on back of good monsoon, increased distribution network and rollout of GST.

Based on expected EPS of Rs21, the stock currently trades at attractive valuations of 18.5x FY19E earnings.

Bajaj Corp, incorporated in the year 2006, is a Mid Cap company (having a market cap of Rs 5765.04 crore) operating in Personal Care sector.

Bajaj Corp key Products/Revenue Segments include Hair Oil which contributed Rs 790.49 crore to Sales Value (99.74 per cent of Total Sales) and Other Operating Revenue which contributed Rs 2.05 crore to Sales Value (0.25 per cent of Total Sales)for the year ending 31-Mar-2017.