Hold Bajaj Electricals: target of Rs 304: ICICI Securities

Moneycontrol • 3 days ago

Original source

Key Investment Pillars

  • Cost efficiencies and operating leverage: Bajaj Electricals' profitability improved due to cost efficiencies, channel consolidation, and operating leverage.
  • Fan recovery: The company's fan business continues to face challenges, but BLDC fans grew 56% YoY, contributing 17% to the fans portfolio.
  • Lighting solutions: The lighting segment's results were mixed, with consumer lighting benefiting from wires and switchgears, offsetting weakness in professional lighting.
  • Distribution and channel inventory: Management is focusing on sustainable sell-out and maintaining disciplined inventory levels.

Thesis Validation Checklist

To validate this thesis, watch for: fan recovery, sustained growth in consumer lighting, and improvement in revenue growth. Key risks include a sharp increase in input prices, competitive pressures, and delays in new product launches.