Bajaj Electricals Ltd. share price target

ICICI Securities Ltd | Retail Equity Research Bajaj Electricals' (BEL) revenues at ~| 936 crore, were down by ~6% YoY led by lower sales from both consumer durable (CD) and E&P; division. Inability to increase the price (despite higher GST rate) and slow execution of orders during transition of GST impacted the sales during Q2FY18. As per the management, GST rollout coupled with completion of range and reach expansion plan (RREP) in FY18, would improve the performance of CD sales, going forward...

Bajaj Electricals (BE ) is a strong national brand in the kitchen, domestic appliance s and lighting segments (54% of revenue); Revival in Engineering and Projects business to improve margins

Revenue has seen a growth of 7.3%: Net Sales for Q1FY18 increased by7.3% to Rs.10294 Mn as against Rs.9594 Mn in the corresponding quarter of the previous year. As per management, sales could have been higher, but for GST rollout in the month of July 2017, Range Reach Expansion Programme (RREP) which they are carrying as a measure to change their supply distribution channel the revenue managed to just YoY growth of 7.3%.

ICICI Securities Ltd | Retail Equity Research Bajaj Electricals' (BEL) revenues at ~| 1029 crore were up ~7% YoY led by strong revenue growth in the E&P; division by 36% YoY owing to strong project execution. However, performance of consumer durable CD sales (includes revenue from lighting segment) fell ~14% YoY owing to de-stocking of inventory at the dealer level before the implementation of GST. As per the management, GST rollout coupled with completion of range and reach expansion plan (RREP)...

ICICI Securities Ltd | Retail Equity Research Bajaj Electricals' (BEL) revenues at ~| 1278 crore were down ~6% YoY led by a lacklustre performance in the consumer durable (CD) segment. CD sales (includes revenue from lighting segment) fell ~15% YoY owing to a decline in revenue from the lighting segment (owing to decline in sales of traditional lighting product). Revenue...

ICICI Securities Ltd | Retail Equity Research Bajaj Electricals' (BEL) revenues at ~| 1055 crore were down ~7% YoY led by a lacklustre performance in consumer durable (CD) segment. CD sales (includes revenue from lighting segment) fell ~15% YoY owing to ~30% YoY decline in revenue from lighting segment. There was a sharp dip in sales of lighting segment mainly due to a sharp dip in sales of traditional lighting products and absence of any government orders. Sales from the project business...

Consumer Durables and EPC Segments Seen YoY De-Growth in Q2: Revenue took a drag of 10.4%: Net Sales/Income from Operations for Q2FY17 decreased by 10.4% to Rs.10058 Mn as against Rs.11221 Mn in the corresponding quarter of the previous year. The sales were declined due to de-growth in consumer durable and EPC segments by 5.5%/16.0% respectively.

Bajaj Electricals' (BEL) revenues at ~| 1006 crore were down ~10% YoY led by lacklustre performance in both engineering & project (E&P;) and consumer durable (CD) segment. CD sales (includes revenue from lighting segment) fell 6% YoY as ~10% YoY growth in sales of appliances category were set off by ~32% dip in sales of lighting segment. There was a sharp dip in sales of lighting segment mainly due to a sharp dip in sales of traditional lighting products and absence of any government orders. Sales from project business...

Near Term Challenges to Continue: Revenue took a drag of 4.6% - Net Sales/Income from Operations for Q1FY17 decreased by 4.6% to Rs.9594 Mn as against Rs.10055 Mn in the corresponding quarter of the previous year. The sales were declined due to de-growth in consumer durable segment by 7.6% and a marginal de-growth of 1% in EPC segment. Despite decline in revenues, the PAT has surged by 12.2% due to lower raw materialexpenses.

Bajaj Electricals (BEL) reported below-estimate revenue growth of 4.5% YoY (Rs 952bn), impacted by a poor show from the reclassified Consumer Products segment. Gross margin jumped by 592bps to 34% on lower input costs.