New Delhi. Shares of electrical products maker Bajaj Electricals have given strong returns over the last 4 years. The company’s shares have gained 358% in 4 years. Also, this stock has increased by 430% in the last 8 years. Today the price of this share has become 1050 rupees. Shares of Bajaj Electrical closed down 1.50 percent on Wednesday. But brokerages still see strength in the stock.
Domestic brokerage firm HDFC Securities has said the stock may continue to rise. According to the brokerage, the company will benefit from the growing demand for electrical products. The brokerage says the company has a good foothold in the fast-moving electronics market. According to the brokerage, the company has a better foothold in rural areas than its peers and the improvement in demand there will benefit the company. The company has a good distribution network. In addition, the company has an 80-year-old heritage that also gives it people’s trust.
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Where will the share price go?
The brokerage believes the stock is still trading at a much lower valuation than its peers. HDFC Securities has said its current valuation is 28 times FY27 EPS (earnings per share), lower than other companies in the same segment. The brokerage has given it a Buy rating with a target price of Rs.1200. This target means the share could rise by around 14% from the current price.
Financial position of the company
The company had a revenue of Rs 1,211 crore in the last quarter of last fiscal, as against Rs 1,313 crore in the corresponding quarter of the previous fiscal. If we talk about the profit, the company made a profit of Rs 29 crore in the March quarter as against Rs 52 crore in the same quarter a year ago. The company has a market cap of Rs 12,251 crore at the current share price.
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Tags: business news, Stock tips
First Publication: June 19, 2024, 21:15 IST
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