Bajaj Cosumer Care

Bajaj Consumer Care reported a topline of Rs. 208.14 cr up 11.23% Q-o-Q basis from Rs. 187.13 cr reported in Q4 FY20 mainly on account of higher sales from the sanitizers. The company reported an EBITDA of Rs. 57 cr with an EBITDA margin of 28.87% for the quarter ended June, 2020. Net Profit stood at Rs. 54.24 cr in Q1 FY21 against Rs. 23.29 cr reported in Q4 FY20 clocking in a growth of 132.86% on Q-o- Q basis.

Being an FMCG company, Bajaj Consumer Care trades at a fairly cheap valuation of 13.5x earnings on ttm basis. Having a single portfolio of hair oil segment and no revenue growth over the past 5 years has hampered the investor sentiments in the past. However, with the new Managing Director in place we believe the company will again ride the topline & profitability growth in the coming few years thereby driving the higher valuations. We opine investors to Buy on Dips as the coming few quarters would be stressful but the future would be bright.