Bajaj Consumer Care Ltd. share price target

Bajaj Consumer (BaCo) had another disappointing print with a 3% YoY revenue decline (~2% YoY volume decline) due to continued stress in wholesale channel for core ADHO (~80% revenue salience), while diversification journey continues, though at a moderated pace.

Bajaj Consumer Care Ltd’s (BCC’s) Q4FY2024 performance was weak, with revenues declining by 4%, OPM lower by 225 bps y-o-y to 14.5% (versus expectations of 16.6%) and PAT falling by 12% y-o-y to Rs. 36 crore.

Bajaj Consumer (BaCo) continues to improve its growth trajectory with gradual recovery in in hair oil market (largely driven by urban markets). ADHO revenue growth of 9% YoY with broad based growth across SKUs is encouraging (with continued media investments).

Revenue growth continues to be subdued impacted by slowdown in the overall hair oil category. Gradual recovery in rural (in hair oil market) is positive while 4%
growth in urban market is on a low base (-5% YoY in 4QFY22). Similar value and volume growth despite inflation implies mass market products have outperformed premium products.

The company's topline rose 8.5% in Q1FY20, driven by a 4.6% volume growth. The volume performance was impacted due to stress in the CSD channel. Excluding CSD volume, the domestic business's volume rose 3.5%. The strong volume growth in modern trade (+13%) and multifold growth in IB sales helped it mitigate the negative impact of CSD decline. The company was able to expand GM by taking price hikes in the quarter. However, operating margin shrunk, due to a rise in A&P; spends. The ADHO brand...

Established to sell hair oils and other beauty products, Bajaj Consumer Care Ltd. is one of the leading players in the hair oil category with brands like Bajaj Almond Drops Hair oil. With the acquisition of Nomarks, they have also...

The company reported a topline growth of 10.9% in Q4FY19, driven by a 6% volume growth during the quarter. The company maintained its volume performance posted in Q3FY19. Despite RM inflation, the company was able to restrict margin fall to 80bps was encouraging considering 30%+ margins, highest margins in the consumer space. The ADHO brand, continues to gain volume and value market share. Strong volume growth in modern trade (+21%) and general trade (+11%) along with +56% growth in IB helped sales growth to accelerate during the quarter. However, 15%...

Bajaj Corp reported a very subdued revenue performance in 2QFY19 with domestic volumes being flattish as per our workings .This is probably attributable to channel inventory clearance prior to the re-launch of its flagship Bajaj Almond Drops brand and some destocking in the rural wholesale channel. Management remains quite confident of delivering a sharp improvement in volume growth from next quarter onwards aided by higher media activation post re-launch of BAD and the festive season demand. Interestingly, as per Nielsen, retail offtakes grew in excess of 25% (of a weaker base though as volumes were merely 5% higher on a sequential basis) and BAD was able to further enhance market share in both...

Strong Signs of Recovery in Rural Markets and Stable Domestic Volumes to Support Top-line: Bajaj Corp has delivered a healthy revenue numbers during the quarter on the back of 13.9% growth in domestic volumes, led by 11.2% YoY growth in Almond Drops Hair Oil volume.

Domestic business performance improved; IB was laggard A top-line growth of 9.5% could be attributed to a satisfactory 8.7% volume growth (on case basis) but was restricted by poor IB performance. Despite 20% YoY increase in LLP prices, GM improved 150bps driven by better sales mix. EBITDA margins also expanded by 50bps as GM expansion and 150bps decline in other expense was partially offset by 140/100bps increase in employee cost/A&P; spends during the quarter. We believe that favourable volume base will enhance performance going ahead. Further improvement in wholesale and CSD channels...

Good quarter; volume trajectory now looking up Bajaj Corp reported a better than expected 1QFY19 earnings buoyed by a much stronger than expected acceleration in volume growth of its flagship Bajaj Almond Drops (BAD) to 11.2% - this is the highest seen in the last 13 quarters, albeit on an easy base (volumes fell 6.6% in 1Q last year due to GST-transition related downstocking by the trade). Domestic volume growth was even stronger at 13.9% and more importantly, retail-level offtakes, which are free of base and destocking-related issues, also grew 10.2% during the quarter. Management is, after quite a long time, sounding reasonably bullish about the business'...