Bajaj Consumer Care downgraded to 'Add' as 88% rally caps upside; TP raised to ₹715
Broker trims rating from 'Buy' to 'Add' despite strong Q1FY27 driven by Almond Drop Hair Oil, flagging 11-12% volume growth and 24.4% EBITDA margin. Raised target of ₹715 vs CMP ₹591 signals limited headroom after the stock's ~88% run. Revenue/EBITDA/PAT seen compounding 14%/20%/20% through FY26-29E on 600 bps cost savings.
What happened
Broker downgrades Bajaj Consumer Care to 'Add' from 'Buy' with raised TP of ₹715, citing strong Q1FY27 results led by Almond Drop Hair Oil growth, but limited
Key facts
- Target ₹715
- CMP ₹591
- 11-12% volume growth
- EBITDA margin 24.4%
- 600 bps cost savings
- Revenue/EBITDA/PAT CAGR 14%/20%/20% FY26-29E
- up ~88% since April 2026
Why this matters
With margins expanding and a strong single-brand dependence on Almond Drop, portfolio diversification via bolt-on acquisitions could reduce concentration risk and unlock the next leg of growth beyond the current re-rating.
What to watch
- Q2FY27 volume growth vs 11-12% guidance
- EBITDA margin holding above 24%
- Raw material (almond oil/LLP) cost movements pressuring cost savings
- Additional broker rating changes or TP revisions
- Rural demand recovery and distribution expansion data
- Monitor other broker revisions for a chorus of downgrades vs upgrades
- Track Almond Drop Hair Oil volume run-rate and new product contribution
- Watch for margin sustainability signals on the 600bps cost-savings program
- Gauge FII/DII positioning and delivery volumes post-downgrade