Synopsis :- Small-cap stock is in focus today after brokerage firm ICICI Securities has maintained a positive outlook on the company.
A small-cap company that is engaged in the business of cosmetics, toiletries and other personal care products, is in the spotlight after receiving a Buy rating with target price by ICICI Securities.
With the market capitalization of Rs. 3,552.82 crore, the shares of Bajaj Consumer Care Ltd is trading at Rs. 271.80, down by 2.14 percent from its previous day’s close price of Rs. 277.75. It has touched an intraday low of Rs. 270 in today’s trading session.
Target and Rational
ICICI Securities reiterated its Buy rating on Bajaj Consumer Care with the target price to Rs. 400, implying an upside of 47.17 percent from CMP.
ICICI Securities said that Bajaj Consumer showed a strong recovery in Q2FY26, with revenue rising 13 percent YoY to Rs. 2.65 billion, led by steady growth in ADHO and good performance from coconut oil and Banjara’s brands. The company saw strong sales in organised trade and e-commerce, while margins improved sharply due to better pricing and product mix.
Gross margin rose 695 bps to 61.1 percent, EBITDA grew 47 percent YoY to Rs. 478 million, and PAT increased 33 percent YoY to Rs. 423 million. ICICI noted that the business is well-positioned for further growth with improving distribution, strong margins, and ongoing integration benefits, maintaining a BUY view on the stock.
Aarohan’s rollout is progressing well, strengthening rural and GT coverage with improving wholesale and rural performance. VPCL integration is on track. Earnings estimates for FY26–27E are raised by 7–8 percent, projecting revenue/EBITDA/PAT CAGR of 11 percent/22 percent/18 percent for FY25–28E.
Financial Outlook
The company reported revenue of Rs. 265 crore in Q2FY26, up 13.2 percent YoY from Rs. 234 crore in Q2 FY25 but marginally down 0.7 per cent QoQ from Rs. 267 crore in Q1 FY26. Net profit rose to Rs. 42 crore, reflecting a 31.3 percent YoY increase from Rs. 32 crore in Q2 FY25 and a 10.5 percent QoQ improvement from Rs. 38 crore in Q1 FY26, indicating strong profitability despite flat revenue growth.
The company reported a gross margin of 59.6 percent in Q2 FY26, increased from 52.7 percent in Q2 FY25 to 56.5 percent in Q1 FY26. whereas employee cost also increased from 11.7 percent in Q2 FY25 to 13.2 percent in Q2 FY26.
A return on equity (ROE) of about 15.7 percent and a return on capital employed (ROCE) of about 29.3 percent and debt to equity stands at 0.03, demonstrating the company’s financial position. At the moment, the company’s P/E ratio is 28.4x lower as compared to its industry P/E 51x.
About the Company
Bajaj Consumer Care Limited, founded in 1953 and based in Mumbai, manufactures and markets personal care products across India and globally. Its portfolio includes hair oils, serums, shampoos, lotions, soaps, and skincare items under brands like Bajaj Almond Drops, Bajaj 100% Pure, Nomarks, Natyv Soul, and Bajaj Jasmine.
As of September 2025, the company’s shareholding pattern shows that promoters hold 40.95 percent of the total equity, indicating strong promoter ownership. Foreign Institutional Investors (FIIs) hold 10.12 percent, while Domestic Institutional Investors (DIIs) own 15.27 percent. The public shareholding stands at 33.68 percent, reflecting a healthy level of institutional and retail and institutional participation in the company.
Written by Akshay Sanghavi
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