Bajaj Electricals Limited Lighting Your World

Bajaj Electricals Limited operates in lighting, home

appliances, fans, luminaries, and engineering and projects
businesses primarily in India. The Company provides
engineering products, consumer products and luminaries.
Engineering products: Bajaj Electricals provides
engineering and projects services consisting of mobile light
tower mast lighting, flag mast, street furniture projects,
including cast iron ornamental lamp posts, hot dip
galvanized poles, and glass reinforces polymer composite
poles; specialty projects, such as rural electrification,
stadium lighting, and transmission line towers.
Consumer products: Bajaj Electricals offers food processors, mixer grinders, juicer mixer
grinders, hand blenders, choppers, oven toaster grillers, microwave ovens, etc.
Luminaries: Bajaj Electricals offers lighting products, such as LED lights, fluorescent
lamps, fluorescent tube lights, fans; power solutions, including inverters, home UPS, and
generators.
Bajaj Electricals Limited is one of the Multibagger Shares, identified by Dynamic
Research based on technical and fundamental research.
Bajaj Electricals share price has touched a 52 week high of Rs. 282 on 10 -Aug -2016
and a 52 week low of Rs.155.00 on 29-Feb -2016, and is currently trading at Rs.
262.75.

Share Holding
The promoters holding in Bajaj Electricals stood at 63.55%, while Institutions and NonInstitutions held 13.66% and 22.79% respectively.
Some of the Non Promoters holding securities more than 1% of total number of
shares are

Reliance Capital Trustee Co. Ltd-A/C Reliance small Cap Fund:1.48%

Swiss Finance Corporation (Mauritius) Limited:1.44%
Ocean Dial Gateway to India Mauritius Limited:1.04%

Financial Analysis
Quarterly Results
For the quarter ended June 2016, the total income from operations of Bajaj Electricals ltd
has reported a decline by 5.18 % on Y-o-Y basis to Rs. 959.36 cr as against Rs. 1009.09 cr
during the same quarter last year.
The operating profit of Bajaj Electricals ltd on standalone has decline by 7.12% Y-o-Y to Rs.
49.73 cr as against Rs. 53.27 cr during the same quarter last year.
The net profit of Bajaj Electricals has registered a growth of 12.66% Y-o-Y to Rs.22.87 cr as
against Rs. 20.30 during the same quarter previous year.
The EPS of the company have showed a growth of 12.38% Y-o-Y to Rs. 2.27 as against Rs.
2.02 during same period last year.

Annual Results
For the year ended March 31, 2016 Bajaj Electricals ltd on standalone basis reported net
sales of Rs. 4611.95 cr compared to Rs. 4258.11 cr FY2015 increased by 8.31% annually.
For the year ended March 31, 2016 Bajaj Electricals on standalone basis reported net profit
of Rs. 95.61 cr compared to a loss of Rs. (-13.95) cr FY2015.

Ratio Analysis
Name
Current Ratio
Quick Ratio
Dividend Yield%
Interest Coverage Ratio
Debt Equity Ratio
Return On Asset (%)
Return On Equity (%)

Ratio
1.31
1.02
1.08
2.78
0.26
3.45
12.71

The above ratio suggests that Bajaj Electricals is operating with a very minimal level of
debt, and have enough liquidity to pay its short term obligation and can easily meet up with
the interest expenses pertaining to its debt obligations. The company has reduced its
interest cost from 23.72 cr in June quarter 2015 to 22.80 cr in June quarter 2016.

Investment Rationale

India is projected to become the 5th biggest consumer durables market in the world
by 2025. Rural markets are expected to witness rising demand for consumer
durables in the coming years as the government plans to invest extensively in rural
electrification.
Transmission Line Towers has performed well in FY 2015-16 in terms of margins.
The increase in the services related revenue by about 70 per cent has resulted in
superb collection of dues against sales. The new orders intake for the year was Rs.
400 crore.
Transmission Line Towers business has completed and commissioned two substations of 132 kiloVolt along with connected transmission lines and bays at Gohad
for MPPTCL and Mungoli.
Bagged order for 220 KiloVolt sub-station along with connected transmission line
and bay at Mittemari in Karnataka from KPTCL.
Successfully completed and commissioned 187 KM long 765 kV D/C Kudgi Kolhapur
Transmission line for PGCIL.
Bajaj Electricals has Successfully completed and commissioned re-conductoring of
Neyveli TS-I to TS-II expansion 400 kV link with HTLS conductor along with LILO of
2nd circuit of Neyveli-Trichy 400 kV D/C line at Nagapatnam Pooling Station.
Bajaj Electricals has Bagged 2 packages of 765 kV D/C Warora Parli transmission
line from PGCIL.
Completed Pile Foundations at 15 tower locations for 132 kV transmission lines of
BSPTCL with design, engineering and construction in record time of 6 months.
Bajaj Electricals is focusing on developing capabilities in other related business
areas like usage of monopoles for transmission lines, laying of underground EHV
cables and construction of EHV sub-stations, besides conventional transmission
lines business. Further, to improve margins, Bajaj Electricals has decided to set its
foot prints in overseas EPC transmission sector.
The Power Distribution Business has acquired orders worth Rs. 120 crore, including
the prestigious orders of Madhya Pradesh Madhya Kshetra Vidyut Vitaran Company

Limited (MPMKVVCL) at Guna District and Feeder Separation Project by Madhya

Pradesh Poorva Kshetra Vidyut Vitaran Company Limited (MPPKVVCL) at Rewa
District and, to close the year-end order book at 1,677 crore.
The demand for LED Luminaires is gaining momentum with tremendous push from
the Government and hence, the company has focused on the development of LED
luminaires. Other than the government and local bodies, the company has serviced
private corporates including Asian Paints, Accenture, Capgemini and Godrej.
Creating Smart Cities is one of the most important agenda of the Central
Government and Bajaj Electricals has taken the challenge to provide high end
lighting and smart solutions to such cities. The commencement has already been
done by Bajaj Electricals by signing a contract for commissioning of pilot
installations with satisfactory results and developing & launching City
Infrastructure Management for Intelligent Public Street Lighting Solution.
Bajaj Electricals solar product has received an award Outstanding contribution
towards development of roof top solar industry during Indian Rooftop Solar
Summit 2016 held in January, 2016 at New Delhi.
The Government of India has recognized power sector as a key sector of focus so as
to encourage continuous industrial growth and has taken many initiatives to boost
up the power sector. The Government focus on attaining Power For All has
accelerated capacity addition in the country.

Investment Opinion
At CMP of Rs.262.75 the stock is trading at a P/E of 25.99, the market cap of the
company is 2563.59 crore. As per Dynamic Levels we recommend a buy on Bajaj
Electricals at 262.75 with a target of Rs.280.

Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal
views of the research team. Users are advised to use the data for the purpose of information and rely on their own
judgment while making investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

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Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/
Research Analyst/ his Relative:

Do not have any financial interest / any actual/beneficial ownership in the subject company.
Do not have any other material conflict of interest at the time of publication of the research report
Have not received any compensation from the subject company in the past twelve months
Have not managed or co-managed public offering of securities for the subject company.
Have not received any compensation for brokerage services or any products / services or any compensation or
other benefits from the subject company, nor engaged in market making activity for the subject company
Have not served as an officer, director or employee of the subject company

Article Written by
Ammar Ali Mirza