Buy Bajaj Consumer Care; target of Rs 715: Choice Institutional Equities
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Choice Institutional Equities issued a buy rating for Bajaj Consumer Care with a target price of Rs 715.
- ✓The firm said strong momentum in the Almond Drop Hair Oil portfolio drove results.
- ✓To manage volatile raw material costs, the company plans a 5% price hike during the third quarter of FY27.
Story at a Glance
- Category
- BUSINESS
- Reported By
- MoneyControl
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Choice Institutional Equities's report on Bajaj Consumer Care Q2FY27 result is ahead of expectation; led by continued strong momentum in Almond Drop Hair Oil (ADHO) portfolio (volume growth est. 11-12%) driven by strong growth in LUPs (~20% of the portfolio) and distribution expansion. EBITDA margin, despite decline in gross margin, was above expectations, owing to cost saving initiatives and operating leverage. Key Management Guidance: Raw material price remained volatile and is at an elevated level at present.
To mitigate the impact, BAJAJCON plans to implement another round of price hike in Q3FY27, amounting to ~5% at the consumer price level, comprising a 2-3% price increase and the remainder through grammage reduction. The company has also shifted to a short and lean raw material procurement strategy.
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