Synopsis: Bajaj Consumer Care Q4 net profit doubles 105% to Rs 63.59 crore, revenue surges 31% to Rs 327 crore, EBITDA margin expands to 23.4%, stock jumps 171% on strong rural and Almond Drops growth.
Bajaj Consumer Care delivered a blockbuster fourth quarter. The company more than doubled its net profit and posted a sharp jump in revenue. The results have sent investors rushing to buy the stock.
Net profit for the quarter jumped 105% year-on-year to Rs. 63.59 crore. This compares with Rs. 30.98 crore in the same quarter last year. Revenue grew 31% to Rs. 327 crore, up from Rs. 251 crore a year earlier. Profit before tax also surged rising to Rs. 78.08 crore from Rs. 38.14 crore. Earnings per share climbed to Rs. 4.79 from Rs. 2.27 a year ago.
Shares of Bajaj Consumer Care shot up 30% this month. The stock touched Rs. 496.85, marking muted movement in shares today. Furthermore, the stock has now gained 171% for the year so far. At current levels, it trades at 25 times P/E.
Bajaj Consumer Care’s EBITDA margin expanded sharply to 23.4%. That is nearly double the 12.7% margin it posted last year. Meanwhile, the company’s total income for the quarter stood at Rs. 313.90 crore. The improved margins reflect stronger pricing and better cost control.
The company’s Low Unit Pack segment, including sachets, grew in the 20s percentage range. Its flagship Almond Drops Hair Oil business posted near double-digit volume growth. Additionally, rural business also grew in the twenties, showing strong demand from smaller towns and villages. Organised trade now contributes 30% of the company’s overall sales.
Beyond its core hair oil business, Bajaj Consumer is building a wider portfolio. The non-ADHO business now generates annual sales of Rs. 225 crore. Moreover, this portfolio is net positive at the contribution level, with single-digit margins. The company aims to grow this to Rs. 500 crore over the next three years.
The results show a clear turnaround in Bajaj Consumer Care’s business. Revenue is growing fast. Margins are improving sharply. Rural and new product segments are adding muscle. Therefore, analysts are watching whether the stock can hold its sharp gains in the coming sessions.
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