Bajaj Corp Ltd (BSE: 533229, NSE:BAJAJCORP) is once again climbing ahead on strong fundamentals and strong Q1, Q2 results. Shares have climbed from 479 levels to 499 levels in less than 2 weeks giving optimism for further growth.
The company is looking at inorganic growth through niche acquisitions banking on its strong distributor network. Five years ago it had entered the skin care segment with the acquisition of NoMarks brand from Ozone Ayurvedics in 2013 to enter into the skin care category.
The company has 3.7 million retail outlets serviced by 9,695 distributors and 22,317 wholesalers.
The company belonging to the Bajaj Group which was established in 1953 is diversified into sugar, consumer goods, power generation and infrastructure development. It is a leader in hair oil category with such products as Bajaj Almond Drops Hair Oil, Brahmi Amla Hair Oil etc. it is banking on extending the almond oil concept to personal care segments based on its nutritional strength.
The company reported a net profit of Rs 220.95 cr for 2016-17 while Q2 FY 18 it was Rs 50.71 cr and 54.97 cr in June quarter. The profit fall in Q2 was attributed to higher expenses. It is trading at a PE of 32.94. On technical charts, RSI of 64 indicates bullishness while MACD has witnessed a bullish cross over and ADX of 37 indicates uptrend.
Company News: Board Meeting on Thursday (January 11) to consider and approve Q3 Results.