I have seen the other thread, nothing much there, these seems to be, where it all started, hence posted here.

RGds.

BAJAJ ELECTRICALS

CMP 240 

MARKET CAP 2382 CRORES

THE COMPANY HAS FOLLOWING MAIN BUSINESS UNITS

ELECTRICAL PROJECTS, APPLIANCES, FANS, LUMINARIES, LIGHTING.

APPLIANCES AND FANS CONTRIBUTE 25% AND 19% REVENUES RESPECTIVELY.

ONE THIRD REVENUES COMES FROM LIGHTING AND ELECTRICAL PROJECTS DIVISION.

 

 

LAST FIVE YEARS RESULTS

 

YEAR	07	08	09	10	11
SALES	1114	1404	1788	2249	2765
OP	93	153	189	246	265
NP	38	73	89	120	147
EPS	4.33	8.18	10	11.61	14.09
ROCE	28	39	42	43.6	37.6

 

At cmp of around 240, the stock is trading at 17 times trailing earnings.

I think the sharp correction in last two-three days has been due to the “Crompton effect” where the consumer division of Crompton supposedly did not perform well and has raised fears that other similar companies also might face the same fate. 

 

The big question here seems to be what kind of growth Bajaj Electricals will show in face of stiff competition from players like CG, Havells, Orient, Anchor, Vguard etc. 

 

Personally I don’t see this one growing at 30-40% like other consumer companies like page, Hawkins, ttk prestige etc. I think this one would grow at a more sedate 15-20% kind of growth.

 

VIEWS INVITED.

 

 

Originally posted by hit2710 Personally I don’t see this one growing at 30-40% like other consumer companies like page, Hawkins, ttk prestige etc. I think this one would grow at a more sedate 15-20% kind of growth

Absolutely agree that this will be steady 15-20% compounder for long term. However, it will weaknesses on the journey, which can used to ride a 25% plus growth.

Here I am

Total Income up 12.5% to 544.25 Cr from 483.87 Cr.
EBIDTA DOWN 26% to 30.16 Cr from 40.8 Cr.
Net Profit DOWN DOWN 50.1% to 11.06 Cr from 22.5 Cr.

EBIDTA margin is 5.5% V/s 8.4% (JQ-10) and 10.4% (MQ-11)
NET Pr margin is 2% V/s 4.7% (JQ-10) and 5.9% (MQ-11)

Raw material costs as a %ge to Income is 75.5% V/s 76.5% (JQ-10) and 78% (MQ-11)
Employee costs stable
Other expenses to Income %ge is 13.1% v/s 10.2% (JQ-10) and 8.3% (MQ-11)

What really caused the damage?
Interest expenses that up 88% to 10.67 Cr from 5.7 Cr
Interest burden now has eaten into EBIT to the extent of 39.4% v/s 14.8% (JQ-10) and 6.6% (MQ-11)

If digged bit deep and looked into segments:

Lighting division doing very well but on a low base where income up 16% and PBIT up 180%
COnsumer durables division hasn't disappointed either where sales up 15.3% and PBIT up 16%

What disappointed is engineering & projects: Sales up 3% but made a LOSS of 7.63 Cr v/s a profit of 11.35 cr (JQ-10) and a profit of 39.6 Cr (MQ-11)

Jab main chota bachha tha
baheit shararat kartha tha
meri chori pakadi jathi...
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