Update shared on 05 Dec 2025
Fair value Decreased 4.58%Analysts have trimmed their price target on Bajaj Electricals from ₹616 to ₹588, as they factor in slightly slower expected revenue growth, modestly lower profit margins, and a marginally higher discount rate, partly offset by a richer forecast future P/E multiple.
What's in the News
- Bajaj Electricals has initiated a strategic review of its loss-making Nirlep cookware and pressure cooker portfolio, exploring options including discontinuation, sale, or hive off to sharpen focus on its core electricals business (company annual report / management commentary).
- The board has approved a restructuring of the Nirlep cookware business, which operates through a separate channel and has been weighed down by unprofitable factories and weak brand loyalty compared with national competitors (company disclosures).
- Bajaj Electricals is sounding out potential buyers for the 56-year-old Nirlep brand, acquired in 2018 for about INR 800 million, as part of a broader push to expand into 8 to 10 new, higher margin product categories (industry executives).
- The company has scheduled a board meeting on October 31, 2025 to review unaudited standalone and consolidated financial results for the second quarter and half year ended September 30, 2025 (exchange filing).
- At a September 23, 2025 board meeting, directors were to consider acquiring the Morphy Richards brand and related IP across key South Asian markets for INR 146 crore, a move that could significantly strengthen Bajaj Electricals's premium appliances portfolio (board agenda / exchange filing).
Valuation Changes
- Consensus analyst price target and fair value estimate reduced modestly from ₹616.33 to ₹588.13.
- Discount rate inched up slightly from 16.02 percent to 16.17 percent, reflecting a marginally higher risk or return expectation.
- Revenue growth trimmed slightly from 12.46 percent to 11.90 percent annually in the explicit forecast period.
- Net profit margin eased down from 4.65 percent to 4.35 percent, indicating a more conservative view on profitability.
- Future P/E forecast valuation multiple raised from 35.97x to 37.36x, partly offsetting the impact of lower growth and margins on fair value.
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