Bajaj Group's Personal Care Company Acquires 49 per cent Stake in Vishal Personal Care; Enhancing Portfolio in the Southern Market
With a PE ratio of 17.5x, the company trades at a discount compared to the industry PE of 32.5x. The company has ROCE of 22.8 per cent and ROE of 18.8 per cent.
Bajaj Consumer Care Limited has successfully completed the acquisition of 49 per cent equity share capital of Vishal Personal Care Private Limited. This transaction is part of a two-tranche acquisition plan, with the first tranche involving the purchase of 49 per cent equity, while the remaining 51 per cent will be acquired in the second tranche. The acquisition was formalised through a Share Purchase cum Shareholders Agreement (SPSHA) with Peepul Capital Fund III LLC, Vishal Personal Care Private Limited, and other stakeholders. This strategic move is expected to enhance Bajaj Consumer Care's foothold in the personal care sector, although specific future impacts are not discussed.
The acquisition details were initially disclosed in an intimation letter dated February 14, 2025, and further updates have been provided as per SEBI regulations. The company has made this information available on its website, ensuring transparency in its operations.
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Bajaj Consumer Care Limited, with a current stock price of Rs 160.35, has a market capitalisation of Rs 2,263.43 crores. Over the past year, the stock has experienced a decline of 29.59 per cent, while over a three-year period, it has seen a minor decrease of 2.11 per cent. The company's stock has fluctuated between a 52-week high of Rs 288.7 and a low of Rs 151.95. Bajaj Consumer Care is positioned within the consumer goods sector, focusing on personal care products. The company's recent acquisition marks a significant step in its strategic growth initiatives. The company has been maintaining a healthy dividend payout of 49.4 per cent.
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In the Quarterly Results of December 2024, the company reported revenue of Rs 234.41 crore, compared to Rs 233.98 crore in September 2024 and Rs 239.15 crore in December 2023, reflecting a YoY decline of 1.98 per cent and a QoQ growth of 0.18 per cent. The net profit stood at Rs 25.31 crore, decreasing from Rs 31.85 crore in September 2024 and Rs 36.35 crore in December 2023, showing a decline of 30.37 per cent YoY and 20.53 per cent QoQ. The net profit margin for the quarter was 10.80 per cent, lower than 13.61 per cent in September 2024 and 15.20 per cent in December 2023.
For the financial year 2024, the company’s revenue was Rs 984.12 crore, an increase from Rs 960.87 crore in FY23, reflecting a growth of 2.42 per cent. The net profit for the year stood at Rs 129.86 crore, up from Rs 110.76 crore in FY23, registering a growth of 8.43 per cent. The net profit margin improved to 11.25 per cent from 10.63 per cent in the previous financial year.
As of December 2024, the shareholding pattern is as follows: Promoters hold 40.95 per cent, FIIs hold 10.54 per cent, DIIs hold 20.23 per cent, and the Public holds 28.28 per cent. There has been a significant increase in promoter shareholding from 39.30 per cent in June 2024 to 40.95 per cent in September 2024, which remained unchanged in December 2024. FIIs reduced their holdings from 14.15 per cent in June 2024 to 10.85 per cent in September 2024, further declining to 10.54 per cent in December 2024. DIIs increased their stake to 20.71 per cent in September 2024 but slightly reduced it to 20.23 per cent in December 2024. The Public shareholding, which was 27.49 per cent in September 2024, increased to 28.28 per cent in December 2024.
With a PE ratio of 17.5x, the company trades at a discount compared to the industry PE of 32.5x. The company has ROCE of 22.8 per cent and ROE of 18.8 per cent.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.