ICICI Securities lifts Bajaj Consumer Care target to Rs 760, sees 15% upside after strong Q1FY27
ICICI Securities retains Buy on Bajaj Consumer Care, raising its target to Rs 760 from Rs 600 (15% upside). Q1FY27 revenue rose 25% YoY to Rs 340 crore, net profit surged 84.5% to Rs 70.7 crore, and EBITDA margin expanded 939bps to 24.4%. Growth spanned modern trade, quick commerce, general trade and rural markets, driving EPS upgrades of 24% for FY27 and 28% for FY28.
What happened
ICICI Securities retains Buy on Bajaj Consumer Care, raising target to Rs 760 (15% upside) after strong Q1FY27: 25% revenue growth, sharp margin expansion, and
Key facts
- target price Rs 760 from Rs 600
- 15% upside
- revenue Rs 340 crore +25% YoY
- net profit Rs 70.7 crore +84.5% YoY
- EBITDA margin 24.4% +939bps
- gross margin 61.8%
- EPS upgrade FY27 24%, FY28 28%
Why this matters
Bajaj Consumer Care's broad-based rural and quick-commerce traction alongside sharp margin gains signals a strengthening FMCG platform worth tracking for partnership or portfolio-expansion opportunities.
What to watch
- Q2FY27 gross margin trajectory vs the 24.4% EBITDA peak
- LLP and light liquid paraffin / mineral oil input cost trends
- Quick-commerce and modern-trade contribution mix disclosures
- Rural demand recovery data and monsoon impact
- Ad & promotion spend as % of sales (leading indicator of margin give-back)
- Other brokerages likely to follow with target upgrades, reinforcing near-term momentum
- Company may guide on sustainability of quick-commerce mix and ADHM (Almond Drops Hair Oil) market share
- Watch for management commentary on ad-spend reinvestment which could cap margin upside
- Potential rotation of FMCG small-cap money into Bajaj Consumer on relative-value screen