(Reuters) – India’s Bajaj Electricals reported a 101.5% jump in fourth-quarter profit on Monday, helped by a one-time income and strong demand for its home appliances, which range from air coolers to LED lights.
The company’s consolidated net profit rose to 590.5 million rupees ($6.95 million) in the quarter ended March 31, from 293.1 million rupees a year ago.
Its bottom-line was also boosted by a 213.7 million rupees one-off gain, which includes the proceeds from liquidation of some properties.
Its revenue from operations increased 6.5% to 12.65 billion rupees.
Shares of Bajaj Electricals surged 13.9% after posting results and approving a 5 billion rupees fund raise.
KEY CONTEXT
The fourth quarter was strong for consumer durables makers, driven by an early summer in India and demand for products like air coolers, refrigerators, and fans, analysts said.
Peers Havells India and Orient Electric both posted upbeat results, buoyed by strong demand for cooling appliances.
PEER COMPARISON
Valuation Estimates (next 12 Analysts’ sentiment
(next 12 months)
months)
RIC PE EV/EBI Revenue Profit Mean # of Stock to Div
TDA growth(%) growth(% rating* analyst price yield
) s target (%)
Bajaj Electricals 31.37 14.79 12.23 79.71 HOLD 9 0.66 0.57
Blue Star 44.03 28.93 16.36 20.95 HOLD 16 0.89 0.56
Voltas 37.32 29.43 12.70 18.58 BUY 33 0.85 0.45
Havells India 53.01 35.02 14.11 21.07 BUY 26 0.86 0.65
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JAN-MAR STOCK PERFORMANCE
— All data from LSEG
($1 = 84.9050 Indian rupees)
(Reporting by Aleef Jahan)
