FMEG Stock Bags Order Worth Rs 564.87 Cr, ICICI Direct Recommends Hold Call

Large cap stock operating in Consumer Durables sector, Bajaj Electricals Ltd declared in its BSE filing that it bagged an order worth Rs 564.87 crores. Soon after this development, shares of the company witnessed spurt in volume by 3.37 times. The stock delivered 168% return in last 1-year. Meanwhile, ICICI Direct has recommended hold call with target price of Rs 1275 apiece, implying a return of 16%. Check
details below:

Bajaj Electricals Ltd Bags Order Worth Crores: According to the BSE filing of the company, Bajaj Electricals Ltd informed that it bagged awards/contracts for Supply of Plant and Installation Services, for development of (i) Distribution Infrastructure of Electric Supply Circle Sasaram (Rohtas and Kaimur districts) and (ii) Distribution Infrastructure of Electric Supply Circle Munger (Munger and Lakhisarai districts) of Bihar, under 'Revamped Reforms-Based And Results-Linked Distribution Sector Scheme (RDSS)', through National Competitive Bidding, from the South Bihar Power Distribution Company Limited ('SBPDCL'), vide their letters dated March 3, 2023, aggregating to Rs. 564.87 crores (excluding taxes)."

Bajaj Electricals Ltd Stock Performance & Return: Current market price of Bajaj Electricals Ltd is Rs 1097.85 apiece on BSE with intraday decline of 0.48%. Its 52-week high is Rs 1265.00 apiece and 52-week low is Rs 857.55 apiece, respectively. The company has a market capitalisation of Rs 12,628.81 crore. The stock offered over 2% return in last 1-year, 168% return in last 3-years, and 92% return in last 5-years.

Valuation: According to ICICI Direct report dated Feb 3, 2023, "We roll over valuation on FY25E and maintain our target price at Rs 1275. We value BEL using SOTP i.e. 35x and 8x PE for CP & lightings and EPC segments, respectively, on FY25E EPS each."
Bajaj Electricals' share price has grown to 2.2x over the past five years (from ~Rs 524 in February 2018 to ~Rs 1150 in February 2023). We maintain HOLD rating on the stock, stated the analyst.

About Bajaj Electricals Ltd: Bajaj Electricals' business portfolio spans across consumer products (CP) and EPC (illumination, power transmission and power distribution). CP (appliances, fans, lighting) contributes ~78% to topline. Its premium brands include Morphy Richards and Nirlep. The company has over 2.3 lakh retail touch points across India.

The stock has been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.