Stock in Action – Bajaj Consumer Ltd

Stock in Action – Bajaj Consumer Ltd
Stock in Action – Bajaj Consumer Ltd

Fundamental & Technical Analysis
by Tanushree Jaiswal Last Updated: Feb 21, 2024 - 06:32 pm 257 Views
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Bajaj Consumer Stock Movement of Day 

Bajaj Consumer Intraday Analysis 

1. The stock opened at 232.95 with a previous close of 228.35, indicating a bullish sentiment.
2. With a market capitalization of 3,440 crore, it shows resilience with a 52-week high of 262.40 and a low of 150.90. 
3. The price performance over the past week surged by 12.68%, with a consistent uptrend seen over one month and three months. 
4. However, over three years, it faced a slight decline. Notably, the stock's beta is 0.42, suggesting low volatility. 
5. Today's volume stands at 7,489,443, significantly higher than the 20-day average of 468,816, signalling increased investor interest.

Probable Rationale Behind Bajaj Consumer Stock Surge 

Bajaj Consumer Care Limited's recent stock surge, despite trading at lower P/E ratio compared to market average, can be attributed to several factors:

Dividend Announcement

Bajaj announced interim dividend of 300% per share for fiscal year 2024, indicating strong financial performance & confidence in future earnings.

Positive Financial Performance

1. Bajaj Consumer Care reported 9.3% increase in net profit & 4.1% rise in revenue for October to December 2023 quarter compared to same period last year. 
2. This growth reflects company's resilience & ability to generate returns for shareholders.

Partnership with WareIQ

Bajaj Consumer Care's partnership with WareIQ to expand its presence on e-commerce platforms like Jiomart demonstrates proactive steps to tap into new distribution channels & increase market reach, which could potentially drive future revenue growth.

Brand Performance Highlights

1. Value growth flat for 9M FY24 with mid-single digit volume growth, Specific pack & geography focus on ADHO to improve distribution
2. Value growth of over 35% in Q3 FY24 & close to 25% in 9M FY24  New Launches under AD Extensions Portfolio & Ethnic Range performing well. Coconut Portfolio continues to scale up

International Business as of Q3-FY23   

A) Middle East & Africa 
1. Overall, region continues to see strong performance with 22% growth in Q3, 9M at 14%.
2. Revival across channels in wholesale & MT in UAE • Saudi continues to do well with presence expanded to key MT accounts Nepal .
3. Delivered 27% growth over Q3 last year • Expansion of distribution in General Trade & forays into Modern Trade.

B) Rest of World Exports 
Q3 expanded by 61% driven by robust growth in US-Canada region & scale up in Malaysia.

C) Bangladesh 
1. Local operations starting to yield results. 
2. 2 new product launched in Q3 – Bajaj 100% pure Glycerine & Bajaj 100% pure Olive oil. Good initial demand.
3. Consumer demand generation through mix of Digital & On Ground activations.

Analyst Recommendations 

1. Analysts view Bajaj Consumer Care as value pick within Consumer Staples sector, expecting improved performance & potential stock rerating in near term. 
2. Bajaj's focus on distribution expansion & product portfolio diversification aligns with market trends & consumer demands.

Market Sentiment

Despite facing challenges such as negative return of 38.50% over past 5 years, investors may perceive Bajaj Consumer Care's recent initiatives & financial performance positively, leading to increased buying interest & driving stock price surge.

Dividend History

Purpose Amount (₹) Ex-date Record Date
Interim Dividend 3 16-Feb-24 RD 17/02/2024
Dividend 5 02-Aug-23 BC 03/08/2023-09/08/2023
Final Dividend 4 22-Jul-22 BC 26/07/2022-01/08/2022

Conclusion

Overall, Bajaj Consumer Care's recent stock surge can be attributed to its strong financial performance, dividend announcement, strategic partnerships, & positive market sentiment. However, investors should consider company's earnings outlook & growth prospects before making investment decisions.

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.

Disclaimer

Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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