Bajaj Consumer Care downgraded to 'Reduce' by Dolat Capital, target cut to Rs 685
Dolat Capital downgraded Bajaj Consumer Care to 'Reduce' with a revised target of Rs 685 post-Q1, citing rich valuations at 30x H1 FY29E EPS despite 24.9% YoY revenue growth, 61.8% gross margin, 24.4% Ebitda margin and recovery in Nepal and Bangladesh markets.
What happened
Dolat Capital downgraded Bajaj Consumer Care to 'Reduce' with a revised target of Rs 685 after Q1 results, citing rich valuations despite 24.9% revenue growth,
Key facts
- target price Rs 685
- revenue growth 24.9% YoY
- gross margin 61.8%
- Ebitda margin 24.4%
- 30x H1 FY29E EPS
Why this matters
The rich 30x forward multiple and export-market recovery underscore Bajaj Consumer Care's premium positioning, framing any M&A or partnership talks around valuation discipline rather than growth doubts.
What to watch
- Additional analyst downgrades or target cuts within 2-4 weeks
- Q2 FY26 volume growth vs Q1 pace
- Gross margin trajectory given input cost movements
- Nepal/Bangladesh revenue contribution consistency
- Any distribution expansion or new product launch announcements
- Monitor whether other brokerages align with Dolat's Reduce or defend Buy/Hold ratings
- Track consensus EPS revisions post-Q1 to see if valuation concern is shared
- Watch institutional flow and delivery volumes for signs of distribution
- Assess management commentary on margin sustainability and export market durability