Bajaj Electricals Q3FY15 Research Report By Angel Broking

Outlook & Valuation: With expectations of timely execution of the existing projects in the E&P segment and volume growth rebounding in the Lightning and Consumer durable segments we expect the top-line to grow at a CAGR of 12.6% over FY2014-FY2017E. We expect the company to report a profit of `81cr in FY2017E as against a loss of `5cr in FY2014. At the CMP of Rs.225, the stock is trading at an attractive EV/Sales of 0.4x on FY2017E, which we feel factors in most of the negatives. Thus, we recommend a Buy rating on the stock with a target price of Rs.312, valuing the stock at EV/Sales of 0.6x.

Bajaj Electricals-3QFY15 Result Update-13 February 2015