PDA

View Full Version : Bajaj Electricals Ltd (NSE:BAJAJELEC) (BSE:500031)



SMR
06-02-2015, 10:51 PM
Bajaj Electricals Limited is an India-based company, which is diversely interested in lighting, luminaires, appliances, fans, and engineering and projects. The Company operates in four segments, which include Lighting, Consumer Durables, Engineering and Projects, and Others. Lighting segment includes lamps and luminaries. The Company’s consumer durables segment includes appliances and fans, and this segment operates in two business units namely kitchen appliances and domestic appliances. Engineering and projects’ includes transmission line towers and special projects, and others segment involved diecasting and Wind Energy. Appliances business unit offers a range of domestic appliances, including water heaters, mixers, food processors and microwave ovens. The Fans BU has a range of ceiling and industrial air circulators. The Luminaires BU offers a range of luminaires including, commercial, industrial and street lighting. Lighting BU markets light sources and domestic luminaires.

Official website: www.bajajelectricals.com

SMR
06-02-2015, 10:52 PM
Bajaj Electricals (BEL) managed to report a good set of results for 4QFY2015 after several quarters of disappointing numbers. For 4QFY2015, the top-line improved by a modest 3.2% yoy to Rs1,311.7cr with subdued performance of Lighting and Consumer Durables (CD) segment being offset by better performance of the Engineering & Projects (E&P) division. The EBIDTA came in at Rs77.4cr as against Rs5.6cr in 4QFY2014 led by better performance of the E&P division. The EBIDTA margin came in at 5.9% as against 0.4% in the corresponding quarter a year ago, due to lower raw material cost and other expenses (lower provisioning yoy). The strong operating performance resulted in the company reporting a net profit of Rs46.9cr as against a loss of Rs10.6cr in the same quarter last year. Revival in E&P boosts confidence: Over the last two years, the overall financial performance of BEL has been impacted by poor performance of the E&P segment on account of low margin legacy orders in the segment. To add to that, the Lighting (Lighting & Luminaries) and CD segments have been witnessing some pressure in the last three quarters due to low volumes. However, with the legacy orders almost completed with necessary provisions and write-offs having been taken into account, we expect the E&P segment to report a better performance, going forward. Further the company has a strong order book of Rs3,400cr which has relatively higher margins. We expect consumer sentiments to improve post 2HFY2016 owing to easing inflation and interest rate cuts, the effects of which tend to realize with a lag effect. Growth in the CD segment will be owing to increase in discretionary spending while the Lighting segment is expected to revive due to pickup in infrastructure and real estate sector. Outlook and Valuation: With expectations of timely execution of the existing projects in the E&P segment and Lighting and CD segments expected to benefit from an improvement in consumer sentiments post 2HFY2016, we expect the topline to grow at a CAGR of 11.4% over FY2015-FY2017E to Rs5,287cr. We expect the company to report a net profit of Rs128cr as against a loss of Rs14cr in FY2015. We retain our Buy rating on the stock with a target price of `341, valuing the company at 0.7x EV/Sales on FY2017E.

Source: http://www.angelbroking.com

SMR
08-10-2015, 05:56 AM
For 1QFY2016, Bajaj Electricals (BEL)’ top-line and bottom-line have come almost in line with our estimates. The top-line growth was healthy mainly due to strong sales in Lighting and E&P segments. On the bottom-line front, the company has reported strong numbers due to healthy revenue growth and strong operating performance. Top-line grows ~14% yoy: BEL’s top-line rose by ~14% yoy to ~Rs1,009cr, which is in line with our estimate, aided by strong growth in E&P and Lighting segments. During the quarter, the E&P segment grew by ~54% yoy to ~Rs330cr due to strong execution of projects. In the Lighting segment the company grew ~20% yoy to ~Rs203cr. However, the company’s Consumer Durables (CD) segment reported a decline due to weak consumer sentiment. Strong operating performance boosts profitability: For the quarter, the company’s bottom-line came in at ~Rs20cr vs Rs6cr in 1QFY2015, owing to a strong operating performance (margin expansion of 182bp yoy). However, higher taxes restricted the profitability. Outlook and Valuation: With expectation of timely execution of the existing projects in the E&P segment and with Lighting and CD segments expected to benefit from an improvement in consumer sentiments post 2HFY2016, we expect the company’s top-line to grow at a CAGR of 11.4% over FY2015-FY2017E to Rs5,287cr. We expect the company to report a net profit of RS128cr in FY2017 as against a loss of Rs14cr in FY2015. We retain our Buy rating on the stock with a target price of Rs341.

Source: http://www.angelbroking.com/