Bajaj Electricals Research Report By Nirmal Bang

We expect revival in profitability of the E&P segment (driven by completion of legacy projects) as well as lighting and consumer durables segments (driven by improved volume growth). Turnaround in the E&P segment, which alone accounts for 60%-65% of total capital employed, and stabilisation of consumer businesses will result in healthy earnings growth along with a sharp recovery in RoCE/RoE from 5.9%/(0.7)%, respectively, in FY14 to 23.3%/19.1%, respectively, in FY16E. We have valued BJE stock at 16x September 2016E earnings (a steep discount compared to peers) with a target price of Rs305.

Download Bajaj Electricals Management Meet Update