KEY DATA Multiple challenges; balance sheet key

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KEY DATA

Rating BUY Sector relative Outperformer Price (INR) 1,060 12 month price target (INR) 1,275 Market cap (INR bn/USD bn) 121/1.6 Free float/Foreign ownership (%) 36.9/19.2

What’s Changed Target Price

Rating/Risk Rating ⚊

QUICK TAKE

Above In line Below

Profit

Margins

Revenue Growth

Overall

Multiple challenges; balance sheet key

Bajaj Electricals (BJE) has posted a miss for two consecutive quarters, largely following similar pattern--lower consumer margins and higher EPC loss. However, in Q1FY22, net debt rose QoQ led by Starlite.

Despite the miss, management has retained double-digit CP growth guidance with healthy OPMs and believes Q1 had many one-offs. Debt reduction guidance retained with encouraging reduction in receivables (both EPC/total), refer exhibit3. While we remain optimistic on BJE’s improving product profile and believe OPMs will catch up, balance sheet management (EPC led) remains key for re-rating. Retain ‘BUY’ even as we get conservative on FY22E EPC losses.

FINANCIALS (INR mn)

Year to March FY20A FY21A FY22E FY23E

Revenue 49,771 45,731 56,343 64,019

EBITDA 2,069 3,015 3,970 5,010

Adjusted profit (1) 1,719 2,536 3,410

Diluted EPS (INR) 0 15.1 22.3 30.0

EPS growth (%) nm nm 47.5 34.5

RoAE (%) 0 12.3 14.9 17.4

P/E (x) nm 70.1 47.5 35.4

EV/EBITDA (x) 61.8 40.9 30.8 24.2

Dividend yield (%) 0.3 0.4 0.4 0.4

PRICE PERFORMANCE

Q1 miss largely led by multiple factors; too many moving parts

BJE allocated INR120mn from EPC to CP segment, which led to lower margins for CP

along with strategic choice of spending more on ASP, which stood at INR 290mn

(INR140mn YoY). Also, INR50mn temporary double rental charge owing to supply-

chain transition along with INR30mn additional incentives paid. If one adjusts these,

including INR20mn VRS charge (90 people), CP margin seems largely stable North of

5%. Though net debt rose QoQ by INR2.3bn to INR6.5bn, it was led by Starlite. Silver

lining to Q1FY22 result was a reasonable cash flow of INR390mn, implying >5x

EBITDA translation and a INR2.9bn reduction in receivables (QoQ). Management

expects to exit FY22 with a positive number on EPC EBIT, while full year losses could

still remain; retention focus intact. (Click to see Q&A session highlights)

Road ahead for BJE over 12-24 months; critical aspects to monitor

BJE’s EPC focus (cash recovery, losses, etc) and execution will remain key variables

to balance sheet improvement, which once achieved we believe will lead to steady-

state EPC business. On the consumer front, Starlite/Hindlamp consolidation remains

a near-term challenge, though seems fruitful in the mid-long term given TAM

expansion/manufacturing consolidation. Management’s ability to reduce number of

variables (too many at this stage) will be key to BJEs re-rating going ahead.

Explore:

Outlook and valuations: Down, but not out; retain ‘BUY’

BJE clearly is tracking/managing far more variables versus peers at this stage, which

throws greater challenges & some fatigue is visible. Even as we model higher EPC

loss/lower CP OPMs trimming FY22/23E EPS by 10%/4%, we retain ‘BUY/SO’ with a

revised TP of INR1,275 (INR1,300 earlier) as we roll forward to Dec 2022E earnings.

Financials Year to March Q1FY22 Q1FY21 % Change Q4FY21 % Change

Net Revenue 8,528 6,077 40.3 12,545 (32.0)

EBITDA 71 ( 208) NA 716 (90.0)

Adjusted Profit ( 64) ( 419) NA 590 (110.9)

Diluted EPS (INR) ( 0.6) ( 3.7) NA 5.2 (110.9)

36,000

39,800

43,600

47,400

51,200

55,000

425

580

735

890

1,045

1,200

Aug-20 Nov-20 Feb-21 May-21 Aug-21

BJE IN Equity Sensex

India Equity Research Consumer Durables August 11, 2021

BAJAJ ELECTRICAL RESULT UPDATE

Amit Mahawar Angad Saluja Manoj Kumar K V +91 (22) 4040 7451 [email protected] [email protected] [email protected]

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BAJAJ ELECTRICAL

Edelweiss Securities Limited

2 Edelweiss Research is also available on www.edelweissresearch.com, Bloomberg - EDEL, Thomson Reuters, and Factset

Financial Statements

Income Statement (INR mn) Year to March FY20A FY21A FY22E FY23E

Total operating income 49,771 45,731 56,343 64,019

Gross profit 13,351 13,328 16,058 18,373

Employee costs 3,960 3,883 4,200 4,720

Other expenses 7,321 6,430 7,888 8,643

EBITDA 2,069 3,015 3,970 5,010

Depreciation 680 693 697 709

Less: Interest expense 1,692 756 480 268

Add: Other income 526 727 596 523

Profit before tax 224 2,412 3,389 4,557

Prov for tax 225 575 853 1,147

Less: Other adj 0 0 0 0

Reported profit (1) 1,836 2,536 3,410

Less: Excp.item (net) 0 (118) 0 0

Adjusted profit (1) 1,719 2,536 3,410

Diluted shares o/s 114 114 114 114

Adjusted diluted EPS 0 15.1 22.3 30.0

DPS (INR) 3.5 4.0 4.2 4.2

Tax rate (%) 100.6 23.9 25.2 25.2

Important Ratios (%) Year to March FY20A FY21A FY22E FY23E

COGS (% of rev) 73.2 70.9 71.5 71.3

Employee cost (% rev) 8.0 8.5 7.5 7.4

Other Exp ( % of rev) 14.7 14.1 14.0 13.5

EBITDA margin (%) 4.2 6.6 7.0 7.8

Net profit margin (%) 0 3.8 4.5 5.3

Revenue growth (% YoY) (25.4) (8.1) 23.2 13.6

EBITDA growth (% YoY) (40.6) 45.7 31.7 26.2

Adj. profit growth (%) nm nm 47.5 34.5

Assumptions (%) Year to March FY20A FY21A FY22E FY23E

GDP (YoY %) 4.8 (6.0) 7.0 6.0

Repo rate (%) 4.4 3.5 3.5 4.0

USD/INR (average) 70.7 75.0 73.0 72.0

Cons. durbls rev growth 12.5 7.1 15.4 19.6

Lighting rev growth 5.8 (5.0) 12.2 19.6

Fans rev growth 19.1 5.1 10.2 16.5

Appliances rev growth 11.4 10.9 18.3 20.9

E&P rev growth (51.9) (32.9) 43.6 1.1

Cons durbls EBIT margin 6.8 9.8 9.0 9.3

Valuation Metrics Year to March FY20A FY21A FY22E FY23E

Diluted P/E (x) nm 70.1 47.5 35.4

Price/BV (x) 8.7 7.5 6.7 5.7

EV/EBITDA (x) 61.8 40.9 30.8 24.2

Dividend yield (%) 0.3 0.4 0.4 0.4

Source: Company and Edelweiss estimates

Balance Sheet (INR mn) Year to March FY20A FY21A FY22E FY23E

Share capital 228 229 229 229

Reserves 13,565 15,818 17,876 20,809

Shareholders funds 13,793 16,047 18,105 21,038

Minority interest 0 0 0 0

Borrowings 7,375 2,588 1,588 1,088

Trade payables 9,003 9,441 11,037 12,506

Other liabs & prov 13,276 12,784 12,784 12,784

Total liabilities 45,132 41,976 44,630 48,531

Net block 4,014 3,327 2,746 2,154

Intangible assets 29 21 16 9

Capital WIP 109 178 178 178

Total fixed assets 4,151 3,527 2,940 2,341

Non current inv 529 1,639 1,639 1,639

Cash/cash equivalent 1,047 616 932 1,533

Sundry debtors 25,365 19,162 23,155 26,309

Loans & advances 419 1,115 1,115 1,115

Other assets 13,621 15,918 14,851 15,595

Total assets 45,132 41,976 44,630 48,531

Free Cash Flow (INR mn) Year to March FY20A FY21A FY22E FY23E

Reported profit (1) 1,719 2,536 3,410

Add: Depreciation 680 693 697 709

Interest (net of tax) (10) 575 359 200

Others 1,570 456 974 1,214

Less: Changes in WC 4,486 3,270 (1,329) (2,430)

Operating cash flow 6,274 6,597 2,384 1,956

Less: Capex (284) (98) (110) (110)

Free cash flow 5,990 6,499 2,274 1,846

Key Ratios Year to March FY20A FY21A FY22E FY23E

RoE (%) 0 12.3 14.9 17.4

RoCE (%) 8.0 15.3 20.2 23.1

Inventory days 76 94 84 74

Receivable days 208 178 137 141

Payable days 100 104 93 94

Working cap (% sales) 33.5 29.4 26.2 26.9

Gross debt/equity (x) 0.5 0.2 0.1 0.1

Net debt/equity (x) 0.5 0.1 0 0

Interest coverage (x) 0.8 3.1 6.8 16.1

Valuation Drivers Year to March FY20A FY21A FY22E FY23E

EPS growth (%) nm nm 47.5 34.5

RoE (%) 0 12.3 14.9 17.4

EBITDA growth (%) (40.6) 45.7 31.7 26.2

Payout ratio (%) nm 24.8 18.8 14.0


BAJAJ ELECTRICAL

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Q1FY22 Conference call – Key highlights

Opening remarks

Has been a tough quarter with covid and commodity cost inflation.

Confident of bouncing back in the coming quarters and for the financial year as

a whole.

Consumer durables EBIT net off many one off items which are:

1. Incremental allocation of common overheads of INR120mn from EPC to

consumer segment.

2. Increased publicity spend INR290mn this year vs INR140mn last year (4.7% of

consumer sales for the quarter) continue to spend on this front to improve

the brand image and maintain at 4-4.5%.

3. Delayed transition due to covid on the logistics front led to incremental cost

of INR50mn in the quarter (double rents).

4. Employee incentives incremental payout of INR30mn, should normalize next

quarter onwards.

5. Commodity cost inflation led to 3.2% margin impact of INR190mn.

6. INR20mn for VRS.

There are short term challenges but to face them will not shy away from spends

such as R&D, etc.

EPC losses coming down. Illumination business saw a turnaround in the quarter

and should positively contribute at the EBIT level. Focus to turnaround the other

2 parts of the EPC business. Power transmission should bounce back as the capex

cycle improves. Power transmission business profitable at the project level.

INR1-1.5bn of incremental order book should help it become positive.

OCF at INR390mn, one of the few companies to generate positive cash flow.

Net debt INR4,250mn. INR2150mn addition due to Starlite lighting. 7th August

net debt at INR4,340mn, more than INR2,000mn reduction in 37days.

Q&A session

Q. Incremental cost allocation from EPC to consumer on an annual basis and

change in guidance?

A. 1% increase in margin every year leading to 9% for FY22. Internal target 10% for

the full year. INR120mn for only this quarter in spite of which margin guidance stays

intact. EPC losses include impact of INR100mn pertaining to receivables provisions,

thus losses look higher.

Q. Is business back to normal? Segment-wise growth?

A. Demand is fairly healthy and that trend has continued in July. Seeing buoyant

demand 45 days in Q2. Appliance growth at 75%, Fans - 49%, Lighting - 12%, Lighting

(b2c+b2b) - 86%, Morphy richard - 85%. Have been flattish previously on Morphy

Richards and now seeing growth. Confident of driving that growth forward and

deliver better performance.

BAJAJ ELECTRICAL



Q. Any other one offs in the other expense item?

A. Major increase due to ASP spend, EPC write off of INR100mn. Beyond this, other

increases are in line.

Q. How do you see gross margins shaping up? Price hikes taken?

A. GMs impacted due to commodity cost impact and lag in passing on the price hike.

3.2% cost increase not being able to pass on. Taken price hike of May-June of 3%,

taken another hike in July of 3% (some categories), other categories hikes around

15th -16th August. By September should be back to normal gross margins. 15% price

hike taken till date out of which 9-12% passed on.

Q. Change in credit terms for the consumer durables segment?

A. Credit period now normalized and in line with industry, should lead to better

working capital.

Q. FY22 EPC still to make a loss?

A. Full year should have positive trajectory but not necessarily a profit which should

lead to breakeven in FY23.

Q. View on EPC provision?

A. Made due to prudent view. Not accepting it as a hit and continue to fighting with

the customer.

Q. How much will we commit on investments in Hindlamp and Starlite?

A. Starlite just a transfer from being a JV to now a subsidiary. Starlite debt now

financed at a lower rate. Allowing to improve efficiency and delivered best ever

output in July. On Hindlamps is where the VRS was spent. Factory has shut down and

not sure if it will restart. Land value and tax assets on Hindlamp and Starlite balance

sheet which shall also benefit.

Q. Is the VRS completely done or will there be more expenses in the coming

quarter?

A. Q2 will have impact of VRS in Ranjangaon factory.

Q. New launches?

A. Total 13 new launches, of which 4 in premium fans category. Lighting to see new

launches in Q2.

Q. Market share gains?

A. Top 3-4 players have had aggregate market share gain relative to the other

players.

Q. Segment level margin in the EPC business?

A. Power distribution/transmission to be mid to low single digit margin. Illumination

over 2-3 years should go to double digit margin, focus to improve market share. Over

100% growth in illumination alone and improved rank from number 4 to 2 now.

Q. Supply disruptions in the quarter? Change in outsourcing strategy?

A. Higher inventory has helped tackle supply-related issues. Now getting back to

normal level of inventory thus production/procurement picking up. In-house vs

outsourced mix to remain at 15-20% in house and balance outsourced, though the

mix of products in that ratio would differ. New head to look after in-house

manufacturing should improve efficiency and margins.


BAJAJ ELECTRICAL


Quarterly peer comparison (INR mn)

Particulars Q1FY22 Q1FY21 YoY % Base qtr % Q4FY21 QoQ % as a % of Q1FY20 3Y CAGR

Revenue

Bajaj Electricals (ECD) 6,132 3,944 55.5 -49.7 9,712 -36.9 78.3 0.9

Havells (Lighting & ECD) 7,859 4,397 78.7 -45.9 10,411 -24.5 96.8 1.0

Crompton (Lighting & ECD) 10,462 7,132 46.7 -47.0 15,153 -31.0 77.7 -4.6

Orient (Lighting & ECD) 4,223 1,788 136.2 -68.5 8,017 -47.3 74.3 -0.8

Margin % Q1FY22 Q1FY21 Change (bps) Q4FY21 Change (bps) Q1FY20 Change (bps)

Bajaj Electricals (ECD) 2.5 2.7 -15 8.8 -624 7.0 -444

Havells (Lighting & ECD) 12.6 9.1 353 17.0 -440 14.5 -192

Crompton (Lighting & ECD) 16.4 17.9 17.6 -111 17.2 -75

Orient (Lighting & ECD) 7.8 -1.3 907 14.4 -655 10.1 -228

Source: Company, Edelweiss Research

Management commentary across peers

Management

commentary Bajaj Electricals Havells Crompton Orient

Fans growth 49% YoY Truncated quarter (growth not

quantified)

63% YoY growth led by premium &

decorative fans (122% YoY -

premium & decorative fans, 258%

YoY super premium fans volume)

>200% growth YoY

Price hike May-June - 3%, July - 3%

(some categories) 10-15% (ex of C&W)

Taken in April & May (not

quantified) 15-20% across categories.

Working

capital

Credit period in line with

industry standard now.

Inventory build-up helping to

counter supply chain issues.

WC days at 68 compared to

65/56 days for Q1FY21/FY21.

Led by decreased creditor days

due to timely payment of

creditors. Inventory high for

fans/Acs.

Increase in working capital due to

higher inventory & advances for

securing commodity

Readiness for the season and to

service pent-up demand were

reason for inventory ramp up.

Receivables at higher levels as

recoveries and rotation of business

were affected.

Distribution

reach No comment

14,500 distributors/1,85,000

retailers

Fans reach up 4.7%, Contribution

from rural up 1.6%, E-commerce

contribution up 1.8%.

More than 1,00,000 retail outlets.

Focus on servicing these outlets

better.

Advertisement

spends

INR290mn (4.7% of CD

revenue). Should be in 4-

4.5% range

At 1.7% of sales and should

increase in the coming

quarters. Shift towards digital

should change normalised ad

spends %.

A&P spends stepped up compared

to last year. At 2.4% of sales vs

0.3/1.9% in Q1/Q4FY21.

2-4% of revenue. Will continue to

invest in advertisement & branding

activities.

Net debt

Net debt at INR6,560mn up

sequentially due to

INR2,150mn of Starlite debt

Net cash position of INR1.3bn

vs INR1.4bn as on 31st March,

2021.

Net cash position of INR7.4bn,

Gross debt down YoY/QoQ to

INR3bn

Net cash position of INR590mn vs

INR2,420mn on 31st March, 2021.

Gross debt at INR180mn vs

INR150mn on 31st March, 2021.


BAJAJ ELECTRICAL



Net debt rises QoQ; receivables continue their downward trajectory

Particulars FY20 FY21 Q1FY22

Net debt 6,328 4,250 6,560

Net debt/EBITDA 3.1 1.4 2.0

Total receivables 25,365 19,162 16,240

Days 186 153 123

EPC receivables 19,730 14,250 12,340

- Power Distribution 13,880 9,720 7,780

- Transmission line tower 4,450 2,550 2,490

- Illumination 1,400 1,980 2,070

Days 381 410 348

CD receivables 5,630 4,920 3,900

Days 18 15 11

Source: Company, Edelweiss Research (Note: Q1FY22 EBITDA & Revenue based on TTM)

Change in estimates (INR mn)

Old New Change %

Particulars FY22E FY23E FY22E FY23E FY22E FY23E

Revenue 56,343 64,019 56,343 64,019 - -

EBITDA 4,364 5,203 3,970 5,010 -9.0 -3.7

EBITDA % 7.7 8.1 7.0 7.8

PAT 2,830 3,573 2,536 3,410 -10.4 -4.6

Source: Edelweiss Research

Segmental snapshot (INR mn)

Year to March Q1FY22 Q1FY21 % change Base qtr % % of Q1FY20 Q4FY21 % change FY21 FY22E FY23E

Revenues (INR mn)

Consumer durables 6,132 3,944 55.5 (49.7) 78.3 9,712 (36.9) 33,035 38,122 45,596

Engineering & Projects 2,395 2,133 12.3 (59.0) 46.0 2,832 (15.4) 12,689 18,221 18,423

Total 8,527 6,077 40.3 12,544 (32.0) 45,725 56,343 64,019

Segment rev. mix (%)

Consumer durables 71.9 64.9 77.4 72.2 67.7 71.2

Engineering & Projects 28.1 35.1 22.6 27.8 32.3 28.8

EBIT (INR mn)

Consumer durables 155 105 46.8 851 (81.8) 3,240 3,431 4,240

Engineering & Projects -133 -437 (69.5) -79 68.2 -541 -246 221

Total 21 -332 (106.4) 772 (97.2) 2,699 3,185 4,461

Segment EBIT margin (%)

Consumer durables 2.5 2.7 8.8 9.8 9.0 9.3

Engineering & Projects (5.6) (20.5) (2.8) (4.3) (1.4) 1.2

Total EBIT margins 0.2 (5.5) 6.2 5.9 5.7 7.0



BAJAJ ELECTRICAL


SoTP table

(INR mn) Q3FY23E Valuation

Methodology Multiple June 2022 TP (INR)

Revenue PAT EPS

Electrical Consumer Durables Segment 43,727 3,204 28.2 P/E 45 1,263

Engineering Segment 18,373 85 0.8 P/E 15 11

Total 1,275

Source: Edelweiss Research

Quarterly financial snapshot (INR mn)

Year to March Q1FY22 Q1FY21 % change Q4FY21 % change FY21 FY22E FY23E

Revenues 8,528 6,077 40.3 12,545 (32.0) 45,731 56,343 64,019

Raw material 5,709 4,372 30.6 8,915 (36.0) 32,402 40,285 45,645

Staff costs 1,020 955 6.8 1,006 1.3 3,883 4,200 4,720

Others 1,729 958 80.4 1,908 (9.4) 6,430 7,888 8,643

Total expenditure 8,457 6,285 34.5 11,828 (28.5) 42,715 52,373 59,008

EBITDA 71 (208) (134.4) 716 (90.0) 3,015 3,970 5,010

Depreciation 144 172 (16.2) 163 (11.4) 693 697 709

EBIT (73) (380) (80.8) 554 (113.2) 2,323 3,273 4,302

Interest 147 269 (45.4) 106 38.0 756 480 268

Other income 133 78 70.3 318 (58.3) 727 596 523

Add: Exceptional items - (147) (30) 118 - -

PBT (87) (718) 736 (111.8) 2,412 3,389 4,557

Tax (23) (152) 175 (112.9) 575 853 1,147

Reported net profit (64) (566) 560 1,836 2,536 3,410

Adjusted net profit (64) (419) 590 (110.9) 1,719 2,536 3,410

Equity capital (FV INR 2) - - - 229 229 229

No. of Diluted shares outstanding (mn) 114 114 114 114 114 114

Adjusted Diluted EPS -0.57 -3.68 5.19 (110.9) 15 22 30

As % of net revenues

Raw material 66.9 71.9 71.1 70.9 71.5 71.3

Staff expenses 12.0 15.7 8.0 8.5 7.5 7.4

Other expenses 20.3 15.8 15.2 14.1 14.0 13.5

EBITDA 0.8 (3.4) 5.7 6.6 7.0 7.8

Depreciation 1.7 2.8 1.3 1.5 1.2 1.1

Interest cost 1.7 4.4 0.8 1.7 0.9 0.4

Other income 1.6 1.3 2.5 1.6 1.1 0.8

Adj net profit (0.8) (6.9) 4.7 3.8 4.5 5.3

Tax rate 26.0 21.2 23.8 23.9 25.2 25.2


BAJAJ ELECTRICAL



Company Description

Bajaj Electricals Limited (BJE), a globally renowned and trusted company, is a part of

"Bajaj Group". Bajaj Electricals business is spread across – Consumer Products

(Appliances, Fans, Lighting), Exports, Luminaires and EPC (Illumination, Transmission

Towers and Power Distribution). Bajaj Electricals has 19 branch offices spread in

different parts of the country besides being supported by a chain of distributors,

authorized dealers, retail outlets, exclusive showrooms called ‘Bajaj World’ and

approximately 462 customer care centres. It also has presence in the hi-end range

of appliances with brands like Platini and Morphy Richards in India. With a

distribution network of over 500 distributors and over 220k retailers, Bajaj covers

the length and breadth of the country with one of the highest tier II/III distribution

reach.

Investment Theme

The covid-19-led lockdown has brought about a major change in consumer

behavior—increased focus on in-house consumption and convenience—spurring

demand for small-ticket home/kitchen appliances. This tailwind comes at a time

when BJE has renewed its focus on the segment: a sharp rise in SKUs (230 additions

in FY20) along with a renewed strategy to increase turnover of existing outlets

(Expand and Extract). Both favorable trend and internal initiatives by management,

in our view, raise prospects for much better growth/OPMs over medium term. As

the consumer segment starts to rev up, the EPC business is gradually stabilizing, with

focus now on recovery of dues and focus on core verticals. We see significant

headroom for a positive surprise to consensus estimates on consumer business for

FY22-23E, and cash flows given BJEs asset light business model, improving consumer

business prospects.

Key Risks

The market in which BJE primarily operates consists of large unorganized market

dotted with a large number of small- and medium-size players which could impact

overall profitability owing to competition.

Several large peers are sharpening focus on tier II/III markets, stronghold of BJE. This

could create greater challenges for BJE going ahead.

Cost overruns, cash flow deferrals could put significant strain in BJEs balance sheet

impacting growth prospects in high competition consumer business.


BAJAJ ELECTRICAL


Additional Data Management

Chairman & MD Shekar bajaj

CFO E.C. Prasad

Exec Director Anuj Poddar

Non Executive Madhur Bajaj

Auditor SRBC & CO LLP

Holdings – Top 10* % Holding % Holding

Capital Group C 6.30 Icici Prudentia 1.19

Hdfc Asset Mana 5.97 Blackrock Inc 0.52

Nippon Life Ind 2.92 Dimensional Fun 0.37

Caisse De Depot 1.96 Investor Educat 0.26

Caisse De Depot 1.53 Aditya Birla Su 0.25

*Latest public data

Recent Company Research Date Title Price Reco

25-May-21 Good FY21 despite Q4 miss; plan on track; Result Update

1,128 Buy

04-Feb-21 Quality with consistency; solid executio; Result Update

769 Buy

23-Nov-20 Slow and steady but on track; Company Update

505 Buy

Recent Sector Research Date Name of Co./Sector Title

10-Aug-21 Whirlpool of India Elevated cost-competitive challenges; Result Update

09-Aug-21 Voltas Lukewarm show; competitive edge intact; Result Update

09-Aug-21 Amber Enterprises Revenue miss hurts; scale clarity key; Result Update

Rating Interpretation

Source: Bloomberg, Edelweiss research

Daily Volume

Source: Bloomberg

Rating Distribution: Edelweiss Research Coverage

Buy Hold Reduce Total

Rating Distribution* 173 54 19 247

>50bn >10bn and <50bn <10bn Total

Market Cap (INR) 214 41 5 260

*1 stocks under review

Rating Rationale

Rating Expected absolute returns over 12 months

Buy: >15%

Hold: >15% and <-5%

Reduce: <-5%

TP600

TP1,111

TP495 TP

400

250

440

630

820

1010

1200

Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21

(IN

R)

BJE IN Equity Buy Hold Reduce0

2

4

6

8

10

Aug-18 Feb-19 Aug-19 Feb-20 Aug-20 Feb-21

(Mn

)

BAJAJ ELECTRICAL



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BAJAJ ELECTRICAL


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Aditya Narain

Head of Research

[email protected]

KEY DATA Multiple challenges; balance sheet key

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