Feb'25 View on Bajaj Electricals Ltd

Bajaj Electricals Limited is a part of the Bajaj Group of companies and is a leading FMEG company spread across Consumer Products - Appliances, Fans, Lighting, Exports, and EPC - Illumination, Transmission Towers and Power Distribution. It also has its presence in premium home appliances and cookware segments with brands like Morphy Richards and Nirlep. The stock has sharply fallen from 750 level to 620 and now looks to reverse to reach the level due to following positive updates • Consolidated revenue in Q3FY25 came in at Rs1,290 cr, 5% higher (+15.3% qoq). • CP segment: EBIT margin up from 1.7% in Q3FY24/1% in Q2FY25 to 5% in Q3FY25. • Bajaj Electrical is net cash company with cash/investments of Rs423 cr as of end Q3FY25. • Q3FY25 results improved yoy and was better than our estimates. • CP segment: Performance improved in Q3FY25; revenue/EBITDA margin up yoy/qoq. • Management continues to focus on cash flow generation/strengthening balance sheet.