Bajaj Electricals soars 10%; volumes surge on 'Morphy Richards' acquisition

Bajaj Electricals shares snapped a four-day losing streak and currently trade at 159 times the average 30-day trading volume

Shares of Bajaj Electricals rallied over 10 per cent on Wednesday after the board approved the acquisition of the ‘Morphy Richards’ brand in South Asia from Glen Electric for a consideration of ₹146 crore. 

 

The household appliances company's stock rose as much as 10.4 per cent during the day to ₹637.3 per share, the biggest intraday rise since May 12 this year. The stock pared gains to trade 10 per cent higher at ₹636 apiece, compared to a 0.46 per cent decline in Nifty 50 as of 9:45 AM. 

 

Shares of the company snapped a four-day losing streak and currently trade at 159 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 15.5 per cent this year, compared to a 6 per cent advance in the benchmark Nifty 50. Bajaj Electricals has a total market capitalisation of ₹7,320.24 crore. 

 

Bajaj Electricals to acquire Morphy Richards brand in South Asia 

Bajaj Electricals on Tuesday said its board has approved the acquisition of the 'Morphy Richards' brand and related intellectual property rights in India and five neighbouring countries from Glen Electric Ltd, part of Ireland-based Glen Dimplex Group, according to an exchange filing.

 

The proposed acquisition, valued at ₹146 crore (excluding applicable taxes and duties), will give Bajaj Electricals exclusive ownership of the brand in India, Nepal, Bhutan, Bangladesh, the Maldives, and Sri Lanka, the statement said. It said the deal remains subject to the signing of definitive agreements and receipt of statutory and regulatory approvals. 

Bajaj Electricals Q1 results 

The company reported a 97 per cent dip in consolidated net profit at ₹91 lakh in the first quarter ended June 30, 2025, due to lower sales in the consumer products segment and ex gratia payment for its Nashik factory.

 

Consolidated total revenue from operations in the quarter under review stood at ₹1,064.59 crore, as compared to ₹1,154.91 crore in the year-ago period. During the quarter, the company reported an exceptional item outgo of ₹6.68 crore as ex gratia for the Nashik factory in Maharashtra.

 

Analysts at Indsec downgraded the rating on Bajaj Electricals to 'Hold' with a target price of ₹594, after the June quarter results. The company has been lagging industry growth for several quarters, with unseasonal rains further dampening demand during the quarter, it said. High inventory built up by trade channels in anticipation of a harsh summer is expected to weigh on growth in the remaining quarters of FY26.

 

"We remain cautious on the company’s outlook and have revised our estimates, now factoring in revenue, Ebitda and adjusted profit after tax compound annual growth rates of 9 per cent, 16.7 per cent and 12.4 per cent, respectively, over FY25-27."