India's Bajaj Electricals posts Q2 profit fall on weak demand

Bajaj Electricals

07/11/2024 08:18

Nov 7 (Reuters) - India's Bajaj Electricals  BJEL.NS  posted a 59% fall in second-quarter profit on Thursday, as
monsoon temperatures reduced demand for cooling products.
    The company, which makes products ranging from kitchen appliances to LED lights, said its consolidated net profit
fell to 129 million rupees ($1.53 million) for the quarter ended Sept. 30, compared to 316.8 million rupees a year ago.
    Total revenue from operations grew 0.5% to 11.15 billion rupees.


KEY CONTEXT

    Demand for cooling products usually declines during July-September with the arrival of the monsoon season, which saw
an above-average rainfall this year. 
    In addition, cost-of-living pressures strained the earnings of consumer goods companies such as Bajaj Electricals. 
    Analysts remain optimistic about demand revival in the December quarter, driven by festive season offers and
discounts.


PEER COMPARISION
    
    
                                    Valuation (next 12     Estimates (next 12         Analysts' sentiment           
                                          months)               months)                                         
                           RIC      PE    EV/EBI  Price/   Revenue     Profit    Mean     # of      Stock to      Div
                                           TDA    Sales   growth (%)   growth   rating*  analyst     price       yield
                                                                        (%)                 s       target**      (%)
   Bajaj Electricals     BJEL.NS   41.32  23.97     -       11.92      43.78      Buy       7         0.85        0.34
     Havells India       HVEL.NS   58.77  39.45    4.48     15.77      23.71     Hold      23         0.86        0.54
   Crompton Greaves      CROP.NS   38.85  25.41    2.54     12.84      29.10      Buy      32         0.83        0.75
 Consumer Electricals                                                                                           
     Polycab India       POLC.NS   44.64  32.19    4.01     19.39      18.54      Buy      26         0.92        0.44
 
    
    
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the
PT
    
JULY-SEPTEMBER STOCK PERFORMANCE

        
    
-- All data from LSEG
-- $1 = 84.3550 Indian rupees)
    

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 (Reporting by Ashna Teresa Britto; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala)
 ((AshnaTeresa.Britto@thomsonreuters.com;))