HDFC Securities sticks with 'Reduce' on Bajaj Electricals, target Rs 315
Brokerage retains cautious stance citing competitive intensity and margin pressure, even as healthy demand persists. New leadership is clearing channel inventory, trimming capex, and pushing into switchgears, solar, and wires to diversify beyond core appliances.
What happened
HDFC Securities retains 'Reduce' on Bajaj Electricals with Rs 315 target, citing competition and margin pressures despite healthy demand. New leadership is
Key facts
- Rs 315 target price
- Q1 FY27
- Q4 FY26
Why this matters
Bajaj Electricals' diversification push into switchgears, solar, and wires opens potential bolt-on or partnership angles in adjacencies where they're building from a standing start.
What to watch
- Q2FY25 EBITDA margin print vs 5.5-6% guidance band
- New product launches in switchgear/wires segments
- Hawkins, Stove Kraft, TTK Prestige commentary on small appliance demand
- Festive season primary sales growth disclosure
- Any management commentary on Nirlep or Morphy Richards subsidiary performance
- Capex guidance revision in upcoming concall
- Track Q2 channel inventory days and primary vs secondary sales gap
- Watch competing brokerages — if 2 more move to Reduce/Sell, consensus shifts
- Monitor switchgear and wires revenue disclosure in next earnings
- Pair-trade signal: long Havells/Crompton vs short Bajaj Electricals on relative margin trajectory