Fundamental Analysis

BAJAJ CONSUMER CARE 

Ticker : 533229  
BUY: Rs 170.45  
Target: Rs 190

Bajaj Consumer Care is engaged in the business activity of trading and manufacturing of cosmetics, toiletries, and other personal care products. On a consolidated quarterly front, the net sales were reported at Rs 193.01 crore in Q1FY21, down by 17.15 per cent from Rs 232.96 crore in Q1FY20. Operating profit was recorded at Rs 67.61 crore in Q1FY21, down by 9.36 per cent from Rs 74.59 crore in Q1FY20. Net profit declined by 4.36 per cent to Rs 54.24 crore in Q1FY21 from Rs 56.71 crore in Q1FY20. Although Q1FY21 performance was impacted due to the nationwide lockdown to contain the outbreak of COVID 19, the company has been able to steadily revive its operations and reverted to its near-normal business in May and June 2020. Aided by the company’s strong distribution network and the launch of new products, Bajaj Consumer Care is likely to recover faster than its peers. Thus, we recommend a BUY.