Stocks of Bajaj Electricals Limited started its trading session at Rs 1,044 and currently trade at Rs 1,076. The scrip is up around 3.1 percent as compared to the previous closing price of Rs 1,043.35. In the last 5 trading sessions, the stock has gained around 2.8 percent ranging from Rs 1,046 to the current levels.
The stock has witnessed a huge increase in volumes comparing the numbers for today and the day prior. Today, the volumes are around 136,000 shares, and a day prior, the volumes were recorded to be 35,000 shares.
Since the start of March 2023, the stock witnessed such a jump in stock prices. One of the probable reasons for the stock prices to go up today is the news reports covering Block Deals pertaining to the company. According to news reports, around 2.14 million shares, equivalent to a 1.9 percent stake, changed hands. Details of the buyers and sellers are not known.
Bajaj Electricals Limited is an Indian company that is engaged in the business of manufacturing and selling consumer electrical appliances. Operating segments of the company include consumer products, engineering and projects, and others.
The Consumer Products segment, which forms the key revenue driver for the company, includes fans, appliances, and Consumer Lighting Products. Apart from domestic sources, the company also has business operations outside India.
Having a walkthrough of the numbers reported by the company, the revenues generated have increased from Rs 1,226 crores in Q2 to Rs 1,484 crores in Q3. On a contrasting note, the net profits have marginally reduced from Rs 62 crores in Q2 to Rs 61.1 crores in Q3.
The profitability metrics of the company exhibit an underperforming nature of the company with the ROE and ROCE numbers reducing in the recent financial year. ROE went down from 13.02 percent in FY20-21 to 7.57 percent in FY21-22. Moreover, ROCE reduced from 14.81 percent in FY20-21 to 12.34 percent in FY21-22.
One good aspect to highlight is the debt-to-equity ratio of the company which is consistently reducing over the past 4 financial years. The most recent movement is the reduction from 0.3 in FY20-21 to 0.03 in FY21-22.
As per the latest Q4 shareholding pattern released, promoters hold a 62.86 percent stake and FIIs hold a 11.21 percent stake in the company.
Written by Amit Madnani
