The 13 reports from 6 analysts offering long term price targets
for Bajaj Electricals Ltd. have an average target of 462.00. The consensus estimate
represents a downside of -5.42%
from the last price of 488.50.
Bajaj Electricals (BJE) reported 1QFY21 revenue of Rs6.1bn, down 53% YoY and 14% below consensus estimate. The topline was impacted due to temporary suspension of Click Here COVID-19 dents performance; Debt reduction a key focus manufacturing, sales and distribution activities in the Consumer Durables segment and project execution in the EPC segment amid COVID-19 lockdown. Lower revenue led to EBITDA loss of Rs208mn (v/s consensus estimate of profit of Rs76mn) and net loss of Rs272mn (v/s consensus estimate of loss of Rs192mn). Consumer Product sales declined 50% YoY to Rs3.9bn (65% of total sales). However, sales recovery in the latter half of 1QFY21...
Strong rural presence drives faster recovery in ECD demand The ECD segment revenue in Q1FY21 fell ~50% YoY due to almost nil sales in April 2020. However, the company saw a demand recovery of 50% in May 2020 while June 2020 sales rose 4% compared to the same period last year. The faster recovery was supported by BEL's strong presence in suburban and rural markets. On the project business, revenue fell ~60% YoY in Q1FY21. On the project front, BEL has changed its strategy to bid only transmission line towers (TLT) and illumination projects and reduce the...
We cut our FY21/22 estimates by 32%/ 3.6% on soft 1Q even as BJE Concall re-affirmed our positive stance given 1) strong underlying demand despite supply chains disruption 2) 4% YoY growth in Consumer Products (CP) in June and just flattish sales in July 3) Kitchen appliances lead recovery where BJE is market leader and 4) guidance of 1% EBIDTA margin expansion in CP/year over the next few years. Although EPC continues to be plagued by delayed execution due to Covid-19 and high overheads, collection...
BJE - Play on mass market Appliances ................................................................. 4 Story in charts ........................................................................................................ 5 BJE well placed to capture uptick in demand ........................................................ 6 Mass market positioning to capture uptick in demand ........................................ 6 Appliances (60% of CP sales): Distribution expansion & product differentiation key to growth ............................................................................... 7 Fans (26% of CP sales): Grow faster than the market; recoup lost market share ...................................................................................................... 8...
Bajaj Electricals (BJE) reported 4QFY20 revenue of Rs12.9bn, down 27% YoY, owing to COVID-19 led disruption. Consumer Product sales was flat YoY at Rs7.5bn (57% of total Click Here COVID-19 dents performance; Debt reduction a key focus sales) while E&P; revenue declined 46% YoY to Rs5.5bn (43% of total sales), owing to planned reduction in fresh bidding. EBITDA fell by 52% YoY to Rs334mn with a margin of 2.6%, down 130bps YoY. EBIT margin of Consumer Product rose 20bps YoY to 6.4% while E&P; segment posted EBIT loss of Rs234mn. BJE reported PBT loss of Rs11mn. A tax write-back of Rs11mn led to nil PAT. Considering the challenges due to COVID-19 restrictions, BJE...
Consumer business revenue remains flat despite lockdown Despite a lockdown in March, CD business revenue posted marginal growth of 0.6% YoY led by growth in appliances, fans, Morphy Richards by 1.4%, 0.3%, 5.7%, respectively. The lighting division posted ~4% YoY dip in revenue. The company kept its focus on select product categories like fans, appliances and air coolers that are likely to see pent up demand and drive its topline at 12-15%, going forward. On the project front, BEL has changed its strategy to bid only transmission line towers (TLT) and illumination...
Our interaction with managements and dealers indicates significant prebuying activity of consumer goods during January-February 2020 on fears of supply related issues from China. While companies have secured supplies to avoid any disturbance in sales in Q4FY20, demand was negatively impacted in March 2020 owing to holiday and post that lockdown across countries. We also believe a late recovery in demand for consumer goods will also impact Q1FY21 performance due to 1) shortage of workers (due to heavy migration), 2) shift in focus on essential goods compared to discretionary products and 3) streamlining of supply chain....
BEL's E&P; segment revenue declined sharply by 53% YoY in 9MFY20 along with a reduction in order intake (| 4844 crore in FY19 vs. | 1742 crore in Q3FY20). The management plans to reduce the power distribution business in FY21E-22E by focusing on TLT and illumination (relatively better margin and asset turns). This is evident from the sharp reduction in receivables from | 2055 crore in FY19 to | 1470 crore in 9MFY20. This led to an improvement in cash flow and reduction in debt by ~| 200 crore in Q3FY20. The management has guided that with the infusion of equity (raised through...
Bajaj Electricals (BJE) reported 3QFY20 revenue of Rs12.8bn, down 41% YoY. Consumer Product sales grew by 13% YoY to Rs8.6bn (67% of total sales) while E&P; revenue declined 70% YoY to Rs4.2bn (33% of total sales) due to reducing exposure of power distribution projects. EBITDA fell by 50% YoY to Rs684mn with a margin of 5.3%, down 110bps YoY. EBIT margin of Consumer Product rose 90bps YoY to 8.2% while E&P; segment posted EBIT loss of Rs138mn. With interest cost rising 18% YoY to Rs394mn, PAT declined 76% YoY to Rs155mn. BJE aims to grow its Consumer Product margins by 1% each year, thus aiming for double digit margins in four years. BJE aims to focus on cash flows (Rs2.1bn OCF in...
The CD division revenue growth at ~9% YoY was largely impacted by slower demand in Q2FY20. While the fan business increased 22% YoY, the appliances, lighting and Morphy Richards business grew albeit at a low pace of ~7%, ~2% and 2.2%, respectively. We believe the CD business is likely to grow at a CAGR of ~13% in FY19-21E led by dealer addition and market share gain in some of the leading categories like fan and water heater segments, going forward. On the EPC front, while illumination and lighting revenue grew ~11% YoY, the transmission line tower and power...
Bajaj Electricals (BJE) reported 2QFY20 revenue of Rs10.9bn, down 32% YoY and 15% below consensus estimate. Consumer Product sales grew 9% YoY to Rs7bn (64% of total revenue). However, E&P; segment revenue fell 59% YoY to Rs3.9bn (36% of total revenue) as per the planned strategy of reducing exposure to power distribution projects. EBITDA declined by 70% YoY to Rs238mn, translating into EBITDA margin of 2.2%, down 280bps YoY. EBIT margin of Consumer Product segment fell 60bps YoY to 5.1% in 2QFY20 compared to 5.7% in 2QFY19. However, cost allocation of variable overheads, as a % of sales, between the two segments has changed owing to change in revenue mix. Hence, for a like-to-like comparison...
Though we are positive on BEL's CD business (with revenue CAGR of ~19% in FY19-21E) led by expansion in dealer network, lumpiness of EPC business would dent overall profitability of BEL with high debt level. We believe the poor performance of the EPC business and higher interest cost would overshadow the profitability of CD business. On an SOTP basis, we cut our multiples owing to flattish growth for the company and value BEL's CD segment at MCap of 1.1x FY21E sales (~55% discount to peers) and E&P; segment at 4x FY21E EV/EBITDA. We revise our rating downward from...
BEL's CD business recorded revenue growth of ~15%, 23% in Q4FY19, FY19, respectively, due to low base and increased reach post completion of RREP. This is largely driven by strong performance in the appliances category that grew ~22%, 30% YoY in Q4FY19, FY19, respectively, followed by the fan business, which grew 19%, 26% YoY, respectively. We model CD segment revenue CAGR of 17% in FY19-21E vs. management guidance of ~24%. However, EPC segment revenue growth at 7%, 58% YoY in Q4FY19, FY19, respectively, was due to execution of large ECP project in UP. The EPC...
Consumer Products Stay Healthy; E&P; Margin Weakens Bajaj Electricals (BJE) reported 4QFY19 revenues of Rs17.7bn, up 10% YoY and 7%/10% below our/consensus estimate, respectively. Consumer product sales grew 15% YoY to Rs7.4bn (42% of total revenues) aided by growth in appliances and fan categories. E&P; segment revenues grew 7% YoY to Rs10.3bn (58% of total revenues). Gross margin fell 540bps YoY to 22% (FY18 gross margin was 27.5%) owing to large contribution from a rural electrification project of Uttar Pradesh (UP). EBITDA declined 49% YoY to Rs694mn, translating to EBITDA margin of 3.9%, down 450bps YoY. EBITDA margin was below our/consensus estimate of 5.8%/6.4%, respectively. EBIT margin of...
We visited Bajaj Electricals (BJE) distributors and retailers in South & West markets to understand the success of its new distribution program. The network now covers 200k retailers across 350 districts. BJE should cover 250k retailers by March 2020. We came out positive after visiting BJE's channel partners with following key takeaways: 1) the ROI at retailer level has increased, 2) premium category growing faster than the...
Bajaj Continues to Strengthen on RREP Model: BEL has posted a very good set of numbers backed by 26.7% YoY growth indurables segment and 157% YoY growth in EPC segment.
ICICI Securities Ltd | Retail Equity Research Bajaj Electricals recorded strong topline growth of ~89% YoY in Q3FY19 led by ~157% YoY growth in engineering & project (E&P;) division due to fast execution of EPC orders from Uttar Pradesh. Consumer durable (CD), which includes appliances and lighting business grew ~27% YoY led by ~40% YoY growth in appliances category. However, lighting segment sales were muted owing to continued pricing pressure in the LED segment. Within the...
