Stock in Action - Apollo Tyres
Stock in Action – Bajaj Consumer Ltd
Last Updated: 21st February 2024 - 06:32 pm
Bajaj Consumer Stock Movement of Day
Bajaj Consumer Intraday Analysis
1. The stock opened at 232.95 with a previous close of 228.35, indicating a bullish sentiment.
2. With a market capitalization of 3,440 crore, it shows resilience with a 52-week high of 262.40 and a low of 150.90.
3. The price performance over the past week surged by 12.68%, with a consistent uptrend seen over one month and three months.
4. However, over three years, it faced a slight decline. Notably, the stock's beta is 0.42, suggesting low volatility.
5. Today's volume stands at 7,489,443, significantly higher than the 20-day average of 468,816, signalling increased investor interest.
Probable Rationale Behind Bajaj Consumer Stock Surge
Bajaj Consumer Care Limited's recent stock surge, despite trading at lower P/E ratio compared to market average, can be attributed to several factors:
Dividend Announcement
Bajaj announced interim dividend of 300% per share for fiscal year 2024, indicating strong financial performance & confidence in future earnings.
Positive Financial Performance
1. Bajaj Consumer Care reported 9.3% increase in net profit & 4.1% rise in revenue for October to December 2023 quarter compared to same period last year.
2. This growth reflects company's resilience & ability to generate returns for shareholders.
Partnership with WareIQ
Bajaj Consumer Care's partnership with WareIQ to expand its presence on e-commerce platforms like Jiomart demonstrates proactive steps to tap into new distribution channels & increase market reach, which could potentially drive future revenue growth.
Brand Performance Highlights
1. Value growth flat for 9M FY24 with mid-single digit volume growth, Specific pack & geography focus on ADHO to improve distribution
2. Value growth of over 35% in Q3 FY24 & close to 25% in 9M FY24 New Launches under AD Extensions Portfolio & Ethnic Range performing well. Coconut Portfolio continues to scale up
International Business as of Q3-FY23
A) Middle East & Africa
1. Overall, region continues to see strong performance with 22% growth in Q3, 9M at 14%.
2. Revival across channels in wholesale & MT in UAE • Saudi continues to do well with presence expanded to key MT accounts Nepal .
3. Delivered 27% growth over Q3 last year • Expansion of distribution in General Trade & forays into Modern Trade.
B) Rest of World Exports
Q3 expanded by 61% driven by robust growth in US-Canada region & scale up in Malaysia.
C) Bangladesh
1. Local operations starting to yield results.
2. 2 new product launched in Q3 – Bajaj 100% pure Glycerine & Bajaj 100% pure Olive oil. Good initial demand.
3. Consumer demand generation through mix of Digital & On Ground activations.
Analyst Recommendations
1. Analysts view Bajaj Consumer Care as value pick within Consumer Staples sector, expecting improved performance & potential stock rerating in near term.
2. Bajaj's focus on distribution expansion & product portfolio diversification aligns with market trends & consumer demands.
Market Sentiment
Despite facing challenges such as negative return of 38.50% over past 5 years, investors may perceive Bajaj Consumer Care's recent initiatives & financial performance positively, leading to increased buying interest & driving stock price surge.
Dividend History
Purpose | Amount (₹) | Ex-date | Record Date |
Interim Dividend | 3 | 16-Feb-24 | RD 17/02/2024 |
Dividend | 5 | 02-Aug-23 | BC 03/08/2023-09/08/2023 |
Final Dividend | 4 | 22-Jul-22 | BC 26/07/2022-01/08/2022 |
Conclusion
Overall, Bajaj Consumer Care's recent stock surge can be attributed to its strong financial performance, dividend announcement, strategic partnerships, & positive market sentiment. However, investors should consider company's earnings outlook & growth prospects before making investment decisions.
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