The 15 reports from 4 analysts offering long term price targets
for Bajaj Electricals Ltd. have an average target of 784.00. The consensus estimate
represents a downside of -18.18%
from the last price of 958.25.
Despite higher advertisement expenses (up 29% YoY to | 45 crore), the strong CP segment margin was a function of better gross margin and permanent savings in other overheads like logistics costs. EBITDA margin is likely to remain elevated supported by price hikes (in the range of 5-9% from January 2021) and increased focus on premium product category. We...
Bajaj Electricals (BJE) reported 3QFY21 revenue of Rs14.9bn, up 17% YoY and in line with consensus estimate. Consumer Products sales grew 34% YoY to Rs11.5bn (77% of total sales), led by strong demand across appliances, fans and lighting. EPC sales fell 18% YoY to Rs3.5bn (23% of total sales) as part of a deliberate strategy to downsize the business. EBITDA grew 116% YoY to Rs1.5bn, leading to operating margin of 9.9%, up 460bps YoY and much above consensus estimate of 6.3%. Consumer Products segment reported strong EBIT margin of 12.5%, up 430bps YoY, led by better gross margin, higher volume and operating costs control. EPC segment posted Rs91mn operating loss, which is likely to continue for...
We increase our FY22/23 earnings estimates by 8.9%/ 9.8% and reiterate our positive stance on BJE given 1) resilient demand momentum across product categories, more so in kitchen appliances 2) market share gains aided by increased distribution reach in smaller towns/ rural India and mass market positioning 3) persistent expansion of CP margins 4) sustained improvement of balance sheet aided by robust cash flows generation. Although sustained...
Healthy revenue, margin & OCF; Debt reduction a key focus UNDER REVIEW Bajaj Electricals (BJE) reported 2QFY21 revenue of Rs12.1bn, up 11% YoY and 16% above consensus estimate. Growth was aided by demand recovery in the Consumer Products segment and resumption of execution at most of the EPC sites. Consumer Products sales grew 13% YoY to Rs7.9bn (65% of total sales), led by healthy growth in fans and appliances. EPC sales grew by 8% YoY to Rs4.3bn (35% of total sales). EBITDA jumped 4x YoY to Rs1bn, leading to operating margin of 8.5%, up 630bps YoY and much above consensus estimate of 3%. Consumer Products reported the highest EBIT margin since 2010 of 10.7%, up 560bps...
ECD segment revenue in Q2FY21 grew ~13% YoY supported by a strong demand recovery post easing of lockdown restrictions. Product wise, appliances, fans, Morphy Richards (MR) revenue grew 14%, 20% and 12% YoY, respectively, while lighting revenues reached pre-Covid levels in Q2FY21. The faster recovery was supported by BEL's strong presence in suburban, rural markets and market share gains. On the project business, closure of about eight to nine projects in Bihar help drive revenue up 8% YoY. BEL has changed its strategy to bid only transmission line towers (TLT),...
We increase our FY21/22/23 earnings estimates by 37.3%/ 9.5%/ 3.7% and reiterate our positive stance on BJE given 1) Upsurge in demand for kitchen appliances and fans post pandemic 2) strong momentum in mass segment, more so in tier2/3 cities 3) guidance of 1% margin expansion in CP/year over the next few years and 4) strengthening of balance sheet aided by robust cash flows generation. EPC reported positive EBIT in 2Q aided by margin reversals...
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...
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...
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...
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...
