Bajaj Consumer Care: Revenue grew by 10.2%; Buy

CD Equisearch Pvt Ltd | May 29, 2019, 1:28 p.m.

The stock currently trades at 20.7x FY20e EPS of Rs 16.65 and 1 EPS of Rs 18.15. Business disruption in the wake of poor monsoon is expected to correct itself in the following qua attempts to diversify its pool of products by increasing personal care products and by ramping up its It would doubtlessly help the company to launch new products. Yet, rising raw material costs remain a cause of concern. Additionally, increasing focus on new product launches may affect the sales of its flagship product, ADHO. On balance, we assign ‘accumulate’ recommendation on the stock with a target price of Rs 400 (previous target Rs 505) based on 22x FY21e earnings over a period of 9-12 months. 



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