Hold Bajaj Consumer Care, target price Rs 260: Edelweiss

Hold Bajaj Consumer Care, target price Rs 260:  Edelweiss

Edelweiss has hold call on with a target price of Rs 260. The current market price of Bajaj Consumer Care Ltd. is Rs 248.15.

Bajaj Consumer Care Ltd., incorporated in the year 2006, is a Mid Cap company (having a market cap of Rs 3673.75 Crore) operating in FMCG sector.

For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 257.61 Crore, up 9.45 % from last quarter Total Income of Rs 235.36 Crore and up 16.25 % from last year same quarter Total Income of Rs 221.61 Crore. Company reported net profit after tax of Rs 57.30 Crore in latest quarter.

Investment Rationale
After a few years of low growth in the hair oil category, growth rates have started to pick up. Additionally, financial stress at the promoter level has abated. It maintains ‘HOLD/SN’ with a TP of INR260. The stock is trading at 15x FY22E EPS.

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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