Bajaj Electricals hits 52-week high; stock up 19% in one week

The stock rallied 8.5% to Rs 306 on BSE in intra-day trade.

Bajaj Electricals rallied 8.5% to Rs 306, also its fresh 52-week high on BSE on back of heavy volumes. The stock of household appliances maker outperformed the market by gaining 19% in one week as compared to 0.42% rise in the S&P BSE Sensex.

In past one month, post October-December quarter (Q3FY17), the stock rallied 22% against 2% gain in benchmark index.

The company’s consumer products segment registered a good performance during the quarter, mainly due to effective procurement, better sales realisation, and sales growth in certain product categories.

The company said the rollout of RREP (Range, Reach Expansion Programme) has been progressing well and the liquidity issues have also been addressed by the government, which would have positive impact on the overall performance of the Company in the coming period.

The performance of EPC segment, for the quarter has been impacted largely due to accounting adjustment as per Ind AS for retention money receivable. However, it is heartening to note that the execution of the projects is as per schedule and there is a good inflow of new orders, said Shekhar Bajaj, chairman and managing director, Bajaj Electricals.

IIFL Wealth Management recommended ‘buy’ rating on the stock as brokerage firm estimate EPC business segment to register robust execution on the back of strong order book. Margins of both the segments would expand due to higher execution and various cost controls implemented.

Angel Broking recommended ‘accumulate’ rating on the stock on expectation of timely execution of new projects in the E&P segment and with the lighting and consumer durables segments expected to benefit from an improvement in consumer sentiments going forward.

At 12:11 pm; the stock was up 7% at Rs 302 against 0.12% gain in Sensex. The trading volumes on the counter jumped more than three-fold with a combined 1.71 million shares changed hands on the BSE and NSE so far.