Kotak Securities's Stock Pick Today: Buy Bajaj Elect.ltd with Target Rs 9765
On June 24, Kotak Securities issued a buy recommendation on Bajaj Electricals Ltd. at the current market price of Rs 1057. The brokerage firm has set a target price of Rs 9765, implying a significant potential upside. This bullish outlook is based on the company's strong market position in various segments of the electrical industry, its recent financial performance, and its plans for future growth and expansion. Investors are advised to consider this buy call and evaluate the potential investment opportunity in Bajaj Electricals Ltd.
About Bajaj Elect.ltd:
Bajaj Electricals Limited (BEL) is an Indian consumer electrical equipment manufacturing company based in Mumbai, India. It is a part of the Bajaj Group. BEL manufactures and markets a wide range of products including fans, lighting fixtures, appliances, and switchgear. The company has a strong presence in India and also exports its products to over 50 countries worldwide. BEL has a network of over 1,000 distributors and over 50,000 retail outlets across India. The company's revenue for the fiscal year 2021-22 was Rs. 6,900 crores (US$ 922 million). BEL is listed on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).
52 Week Price Trend:
Bajaj Elect. Ltd. (NSE: BAJAJELEC) is currently trading at Rs. 1057, having fluctuated between Rs. 1222.6 (52-week high) and Rs. 883.51 (52-week low) over the past year. The stock has witnessed a gradual uptrend in recent months and is currently trading close to its 52-week high. With a P/E ratio of 30.6 and a dividend yield of 0.76%, the stock is attractively valued and offers potential growth opportunities for investors. Its strong financial performance and established market position make it a viable investment option.
Stratzy's MOST Analysis:
BAJAJELEC's MOST rating of BB indicates a Medium Fundamental Risk. Stratzy's MOST framework evaluates companies based on Management, Outlook, Safety, and Trend (MOST). The rating reflects that BAJAJELEC has a satisfactory level of management quality, positive outlook for the company, adequate safety measures in place, and a trending performance that meets expectations. This rating suggests that while BAJAJELEC may have some areas for improvement, its overall fundamentals are sound, indicating a moderate level of risk for investors.
Company's Fundamentals:
Bajaj Elect. Ltd. (NSE: BAJAJELEC) is an electrical equipment manufacturer with a current stock PE ratio of 64.77, indicating its stock is priced higher than its earnings. The PB ratio of 8.18 suggests that the company's market value is 8.18 times its book value, implying a premium valuation. However, the dividend yield of only 0.4% indicates that investors may not receive significant income from dividends. Despite the high valuation and low dividend yield, BAJAJELEC's strong industry position and potential for growth may warrant consideration for long-term investors.
Fundamental and Technical information provided in this blog were last updated on 22 Jun, 2024
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