The shares of Bajaj Consumer Care started the week on a strong note. On Monday, the shares gained as much as 3 per cent. The rally continued on Tuesday as it was trading 4 per cent higher at Rs 180 levels till the afternoon.
Trading volumes on the counter jumped over three-fold with a combined 3.6 million shares changing hands on the NSE and BSE till 12:46 PM on the day.
The stock started rallying after the company announced that the board of directors is set to meet on Friday, December 9th to consider a share buyback proposal. The major objective of a share buyback is to control the fall in the share price by reducing the supply in the market and thus, pushing the price up.
The shares of the company have gained 10 per cent in the span of a month. However, on a Year to Date (YTD) basis, the share has been volatile and shed approximately 9 per cent.
Bajaj Consumer Care Ltd, part of the Bajaj group, is engaged in the business of cosmetics, toiletries, and other personal care products. It is a leader in the hair oil segment in India with a market share of more than 10%.
In Q2FY23, the total revenue of the company stood at Rs 232.45 crore which was an increase of 8 per cent Year on Year from Rs 216.18 crore. Their net profit in the period was Rs 31.66 crore which declined from Rs 46.51 crore in Q2FY22.
The company has a market capitalization of Rs 2,666 crore and a dividend yield of 4.43% as of December 6th, 2022.
Written by Anoushka Roy
