Fundamental Analysis of Bajaj Consumer Care – Financials & More

Fundamental Analysis of Bajaj Consumer Care: How important is self-care to the Indian populace? To a population of 1.4 billion people, it’s quite important. The present decade has shown humanity on a global scale, the importance and necessity of healthy products. Recognizing that India is one of the largest markets for the healthcare and FMCG sector, major foreign entities have set up shop in India using subsidiaries. In this article, we’re going to take a deep dive into one specific company – Bajaj Consumer Care. Read on as we do a fundamental analysis of Bajaj Consumer Care, covering all key financial metrics. Industry Overview Of the total FMCG sale, 50 percent comes from the household and healthcare products sector. These include products like soaps, detergents, deodorants, face washes, hair oils, etc. Within the FMCG sector, are different subcategories such as processed foods, health drinks, beverages, dairy, and personal care. If we’re going to quantify the importance of the self-care and consumer industry, take a look at some of the facts below: The Indian FMCG industry is valued at a market size of $56.8 billion (Dec 2022), making it the fourth largest sector in India. The FMCG sector employs 3 million people in India or 5 percent of total factory employment. Of the total FMCG sales, 50 percent is attributed to Household and personal care products. 65 percent of FMCG sales came from the urban sector and the remaining 35 percent from rural regions as of 2022. Company Overview Bajaj Consumer Care was incorporated in 2006 as Bhaumik Agro before subsequently being renamed to Bajaj Corp Pvt Ltd. The company turned into a subsidiary of Bajaj Resources in 2008, licensing its brand to itself. In 2019, the company renamed itself to what we know today – Bajaj Consumer Care. The hair care company set up its first plant in Parwanoo, Himachal Pradesh in 2008. They manufacture, distribute, and market their hair oil products, such as the Bajaj Almond Drops, Bajaj Amla Aloe Vera, and Pure Coconut Oil. The company has 3 wholly owned plants apart from 8 outsourced manufacturing plants and 21 warehouses. Since its founding in 2006, the company has grown to launch different hair care products over the years. They have also diversified into the skincare and personal care products segment. Bajaj Consumer Care has a domestic presence across the country and an international export presence as well. Bajaj Consumer Care is part of the personal care category, operating in the hair and skin care segments. It is estimated that 94 percent of Indian households used hair oil in recent years. The sector saw a growth of 4.2 percent in value and 2.2 percent in volume in FY 22. These figures are close to their pre-pandemic levels. According to Nielsen Offtake, stated in the annual report of Bajaj Consumer Care (FY 21-22), the average consumption of hair oil per household is 1.2 liters. Fundamental Analysis Of Bajaj Consumer Care Below we’ll take a look at the key metrics of Bajaj Consumer Care, including the company’s revenues, profits, debt, and more. Bajaj Consumer Care – Financials Revenues, Operating Profit, and Net Profit Growth Financial Year Revenues (Rs In Cr) Operating Profit Margin Net Profits (Rs. In CR) FY 2019 918 30.9% 221 FY 2020 852 26.8% 184 FY 2021 921 29.4% 223 FY 2022 879 23.5% 169 FY 2023 960 17.6% 139 Bajaj Consumer Care is a small-cap FMCG stock, with a market capitalization of ₹2,491 crores. As per the latest annual report, the company’s segment operation is concentrated on only one – Cosmetics, Toiletries & Other Personal Care products. For the financial year ending 2023, the company earned ₹960 crores in revenues, up from ₹879 crores last year and ₹918 crores in FY 19. However, operating profits have been falling year on year for the past 5 years. Their FY 23’s OPM was 17.6 percent, almost half of its margins in FY 19 (30.9 percent). Margins are as important to a company as its revenues. Even though revenue growth has been slow (3 percent in 5 years), a drop in OPM has directly affected the net profitability of the company. Hence FY 23 saw the company report both its highest revenues and its lowest net profits in the past 5 years. Return Ratios Financial Year ROE ROCE FY 2019 47.41 60.81 FY 2020 28.28 35.09 FY 2021 29.47 35.83 FY 2022 20.95 25.51 FY 2023 17.62 21.23 Bajaj Consumer Care’s return ratios (ROE & ROCE) peaked in FY 19, following which they have dropped year on year to their current figures of 17.6 (ROE) and 21.2 (ROCE). This should come as no surprise given that the company’s recent revenues and profits have more or less flatlined or dropped in recent years. Debt & Interest Coverage Ratio Financial Year D/E Ratio Interest Coverage Ratio FY 2019 0.05 242.82 FY 2020 0.03 53.98 FY 2021 0.01 202.11 FY 2022 0 210.59 FY 2023 0 183.14 Despite two years of uncertainty and economic turmoil worldwide, the company has managed its capital well, reducing debt to zero, while also maintaining safe levels of interest coverage, as seen in the table above. The company had a low D/E ratio, to begin with, and that figure has dropped to zero, indicating that the company is virtually debt free. Future Plans Of Bajaj Consumer Care To grow within the personal and hair care industry, Fundamental analysis of Bajaj Consumer Care has identified its strengths and prioritized the following plans for its future: Extending the company’s flagship product line – Almond Drops beyond hair oil products. Elevating their Bajaj Almond Drops Hair Oil products in the market as a premium product. Upgradation of plants to improve capacity, and productivity along with the required safety and quality measures. They have implemented smart manufacturing processes to reduce cost, time and improve quality and customer service. Key Financial Metrics Of Bajaj Consumer Care Here are the key financial metrics of Bajaj Consumer Care: CMP ₹ 172 Market Cap (Cr.) ₹ 2,491 EPS ₹ 9.63 Stock P/E 17.9 ROCE 21.1 % ROE 17.4 % Face Value ₹ 1.00 Book Value ₹ 54.6 Promoter Holding 39.4 % Price to Book Value 3.16 Industry P/E 33.3 Dividend Yield 4.64 % Net Profit Margin 14.5 % Operating Profit Margin 14.7 % Key Takeaway: In the huge playing field that is the personal and hair care segment of the FMCG industry, Bajaj Consumer Care has managed to carve a niche for itself by selling hair care products. While it does have skincare product lines, the company has clearly stated in its annual report that it recognizes its business presence as a single segment, a fact that is reflected in its product lines and sales. Despite setting itself up as a hair care brand, and concentrating on its core business, the company’s share price has taken a major beating in the past 5 years, giving a negative return of (-61.6) percent. The recent spike in holding by some top investors, including promoters might indicate that the company still has some steam left in the company. That’s all for our fundamental analysis of Bajaj Consumer Care. We hope you found it insightful. Happy Investing! By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions. The post Fundamental Analysis of Bajaj Consumer Care – Financials & More appeared first on Trade Brains. [Image] Here are Some More Investing Tips and Resources. Enjoy! Sponsored [Click here to take advantage of the 50% discount! Promo Code: MEMORIAL50]( [Fundamental Analysis of Bajaj Consumer Care – Financials & More]( Fundamental Analysis of Bajaj Consumer Care: How important is self-care to the Indian populace? To a population of 1.4 billion people, it’s quite important. The present decade has shown humanity on a global scale, the importance and necessity of healthy products. Recognizing that India is one of the largest markets for the healthcare and FMCG sector, major foreign entities have set up shop in India using subsidiaries. In this article, we’re going to take a deep dive into one specific company – Bajaj Consumer Care. Read on as we do a fundamental analysis of Bajaj Consumer Care, covering all key financial metrics. Industry Overview Of the total FMCG sale, 50 percent comes from the household and healthcare products sector. These include products like soaps, detergents, deodorants, face washes, hair oils, etc. Within the FMCG sector, are different subcategories such as processed foods, health drinks, beverages, dairy, and personal care. If we’re going to quantify the importance of the self-care and consumer industry, take a look at some of the facts below: The Indian FMCG industry is valued at a market size of $56.8 billion (Dec 2022), making it the fourth largest sector in India. The FMCG sector employs 3 million people in India or 5 percent of total factory employment. Of the total FMCG sales, 50 percent is attributed to Household and personal care products. 65 percent of FMCG sales came from the urban sector and the remaining 35 percent from rural regions as of 2022. Company Overview Bajaj Consumer Care was incorporated in 2006 as Bhaumik Agro before subsequently being renamed to Bajaj Corp Pvt Ltd. The company turned into a subsidiary of Bajaj Resources in 2008, licensing its brand to itself. In 2019, the company renamed itself to what we know today – Bajaj Consumer Care. The hair care company set up its first plant in Parwanoo, Himachal Pradesh in 2008. They manufacture, distribute, and market their hair oil products, such as the Bajaj Almond Drops, Bajaj Amla Aloe Vera, and Pure Coconut Oil. The company has 3 wholly owned plants apart from 8 outsourced manufacturing plants and 21 warehouses. Since its founding in 2006, the company has grown to launch different hair care products over the years. They have also diversified into the skincare and personal care products segment. Bajaj Consumer Care has a domestic presence across the country and an international export presence as well. Bajaj Consumer Care is part of the personal care category, operating in the hair and skin care segments. It is estimated that 94 percent of Indian households used hair oil in recent years. The sector saw a growth of 4.2 percent in value and 2.2 percent in volume in FY 22. These figures are close to their pre-pandemic levels. According to Nielsen Offtake, stated in the annual report of Bajaj Consumer Care (FY 21-22), the average consumption of hair oil per household is 1.2 liters. Fundamental Analysis Of Bajaj Consumer Care Below we’ll take a look at the key metrics of Bajaj Consumer Care, including the company’s revenues, profits, debt, and more. Bajaj Consumer Care – Financials Revenues, Operating Profit, and Net Profit Growth Financial Year Revenues (Rs In Cr) Operating Profit Margin Net Profits (Rs. In CR) FY 2019 918 30.9% 221 FY 2020 852 26.8% 184 FY 2021 921 29.4% 223 FY 2022 879 23.5% 169 FY 2023 960 17.6% 139 Bajaj Consumer Care is a small-cap FMCG stock, with a market capitalization of ₹2,491 crores. As per the latest annual report, the company’s segment operation is concentrated on only one – Cosmetics, Toiletries & Other Personal Care products. For the financial year ending 2023, the company earned ₹960 crores in revenues, up from ₹879 crores last year and ₹918 crores in FY 19. However, operating profits have been falling year on year for the past 5 years. Their FY 23’s OPM was 17.6 percent, almost half of its margins in FY 19 (30.9 percent). Margins are as important to a company as its revenues. Even though revenue growth has been slow (3 percent in 5 years), a drop in OPM has directly affected the net profitability of the company. Hence FY 23 saw the company report both its highest revenues and its lowest net profits in the past 5 years. Return Ratios Financial Year ROE ROCE FY 2019 47.41 60.81 FY 2020 28.28 35.09 FY 2021 29.47 35.83 FY 2022 20.95 25.51 FY 2023 17.62 21.23 Bajaj Consumer Care’s return ratios (ROE & ROCE) peaked in FY 19, following which they have dropped year on year to their current figures of 17.6 (ROE) and 21.2 (ROCE). This should come as no surprise given that the company’s recent revenues and profits have more or less flatlined or dropped in recent years. Debt & Interest Coverage Ratio Financial Year D/E Ratio Interest Coverage Ratio FY 2019 0.05 242.82 FY 2020 0.03 53.98 FY 2021 0.01 202.11 FY 2022 0 210.59 FY 2023 0 183.14 Despite two years of uncertainty and economic turmoil worldwide, the company has managed its capital well, reducing debt to zero, while also maintaining safe levels of interest coverage, as seen in the table above. The company had a low D/E ratio, to begin with, and that figure has dropped to zero, indicating that the company is virtually debt free. Future Plans Of Bajaj Consumer Care To grow within the personal and hair care industry, Fundamental analysis of Bajaj Consumer Care has identified its strengths and prioritized the following plans for its future: Extending the company’s flagship product line – Almond Drops beyond hair oil products. Elevating their Bajaj Almond Drops Hair Oil products in the market as a premium product. Upgradation of plants to improve capacity, and productivity along with the required safety and quality measures. They have implemented smart manufacturing processes to reduce cost, time and improve quality and customer service. Key Financial Metrics Of Bajaj Consumer Care Here are the key financial metrics of Bajaj Consumer Care: CMP ₹ 172 Market Cap (Cr.) ₹ 2,491 EPS ₹ 9.63 Stock P/E 17.9 ROCE 21.1 % ROE 17.4 % Face Value ₹ 1.00 Book Value ₹ 54.6 Promoter Holding 39.4 % Price to Book Value 3.16 Industry P/E 33.3 Dividend Yield 4.64 % Net Profit Margin 14.5 % Operating Profit Margin 14.7 % Key Takeaway: In the huge playing field that is the personal and hair care segment of the FMCG industry, Bajaj Consumer Care has managed to carve a niche for itself by selling hair care products. While it does have skincare product lines, the company has clearly stated in its annual report that it recognizes its business presence as a single segment, a fact that is reflected in its product lines and sales. Despite setting itself up as a hair care brand, and concentrating on its core business, the company’s share price has taken a major beating in the past 5 years, giving a negative return of (-61.6) percent. The recent spike in holding by some top investors, including promoters might indicate that the company still has some steam left in the company. That’s all for our fundamental analysis of Bajaj Consumer Care. We hope you found it insightful. Happy Investing! By utilizing the stock screener, stock heatmap, portfolio backtesting, and stock compare tool on the Trade Brains portal, investors gain access to comprehensive tools that enable them to identify the best stocks also get updated with stock market news, and make well-informed investment decisions. The post Fundamental Analysis of Bajaj Consumer Care – Financials & More appeared first on Trade Brains. [Continue Reading...]( [Fundamental Analysis of Bajaj Consumer Care – Financials & More]( And, in case you missed it: - [“EasyJet’s stock growth: Flying high”]( - [Linkfest : 30 May, 2023]( - [“BPCL’s Share Price Trends and Financial Performance”]( - [Share Price of NSE: The Rising Fortunes]( - [“Is Disney’s Share Price Hitting an All-Time High?”]( - FREE OR LOW COST INVESTING RESOURCES - [i]( [i]( [i]( [i]( Sponsored [How He Bagged One Of The Top Trading Records…]( A reclusive millionaire has been quietly racking up winning trade after winning trade. Despite avoiding most headlines, he’s become one of the most successful traders around - over the last 8 years, he’s banked a 97% win rate. How does he do it? He sat down for a rare interview where he revealed it all. [Click HERE to see how he’s done it…]( [Privacy Policy/Disclosures]( - CLICK THE IMAGE BELOW FOR MORE INFORMATION - [i]( Good Investing! T. D. Thompson Founder & CEO [ProfitableInvestingTips.com]() ProfitableInvestingTips.com is an informational website for men and women who want to discover investing and trading products and strategies to educate themselves about the risks and benefits of investing and investing-related products. DISCLAIMER: Use of this Publisher's email, website and content, is subject to the Privacy Policy and Terms of Use published on Publisher's Website. Content marked as "sponsored" may be third party advertisements and are not endorsed or warranted by our staff or company. The content in our emails is for informational or entertainment use, and is not a substitute for professional advice. Always check with a qualified professional regarding investing and trading guidance. Be sure to do your own careful research before taking action based on anything you find in this content. If you no longer wish to receive our emails, click the link below: [Unsubscribe]( Net Wealth Consultants 6614 La Mora Drive Houston, Texas 77083 United States (888) 983-9123