India's Bajaj Electricals beats Q3 revenue estimate as festivals boost demand

Bajaj Electricals

04/02/2025 08:52

Feb 4 (Reuters) - India's Bajaj Electricals  BJEL.NS , whose home appliances range from kitchen
appliances to LED lights, on Tuesday reported third-quarter revenue above analysts' estimates, helped by
decent demand during a period that included many festivals.
    The company's revenue from operations increased 5% to 12.90 billion rupees ($148.20 million), marginally
above analysts' average estimate of 12.86 billion rupees, as per data compiled by LSEG.
    Its consolidated net profit of 333.6 million rupees fell 10.7% from a year ago as expenses rose, but was
above analysts' estimate of 323.9 million rupees. 
    Shares of the company rose 2.09% in Mumbai.
    
    KEY CONTEXT
    The October-to-December quarter, which includes festivals such as Diwali, typically sees Indians splurge,
with many buying or upgrading household appliances. 
    Bajaj, in particular, has said that its topline growth may be aided by a rebound in demand in rural
markets, which make up about 30% of its sales, according to analysts. 
    Its net profit moderated year-on-year as a result of higher expenses at a time when the company is
attempting to catalyze growth by shifting to premium products and ramping up investments into improving brand
perception. 

PEER COMPARISON 
                            Valuation (next 12      Estimates (next 12  Analysts' sentiment
                            months)                 months)             
                 RIC        PE      EV/EBIT  Price  Revenue   Profit    Mean      # of   Stock to   Div yield
                                    DA       /Sale  growth(%  growth(%  rating*   analy  price      (%)
                                             s      )         )                   sts    target**   
 Bajaj            BJEL.NS   37.71   19.71           11.25     76.49     Hold      9      0.75       0.43
 Electricals                                                                                        
 Whirlpool of     WHIR.NS   30.50   17.65    1.94   12.95     36.27     Buy       11     0.58       0.44
 India                                                                                              
 Havells India    HVEL.NS   58.07   39.13    4.00   14.91     23.17     Buy       24     0.90       0.64
 Voltas           VOLT.NS   40.71   31.80    2.23   15.92     32.79     Hold      33     0.86       0.44
 * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
    
OCTOBER TO DECEMBER STOCK PERFORMANCE
    
 -- All data from LSEG
 -- $1 = 87.0650 Indian rupees


($1 = 87.0430 Indian rupees)

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Bajaj Electricals Stock Performance    https://tmsnrt.rs/3EyUktC
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 (Reporting by Ananta Agarwal in Bengaluru; Editing by Savio D'Souza and Mrigank Dhaniwala)
 ((Ananta.agarwal@thomsonreuters.com;))