Bajaj Corp

This FMCG company, part of the Shishir Bajaj group of companies,  gets the distinction of being the first company to declare its Q2FY13 numbers. Despite a 14% (YoY) rise in raw material prices, 23% rise in overall operating expense and more importantly, advertising cost going up by 42%, the company posted a healthy set of numbers. On a 27% rise in net sales at Rs.136 crore, the company posted a 34% rise in net profit at Rs.38 crore.  Though YoY, the picture looks good, QoQ there are signs of pressure as topline fell 1%  and net profit was up just by a meager 2%.

The company is a market leader in light hair oils in India, with a 51% market share with brands like Bajaj Almond, Bajaj Kailash Parbat and Bajaj Brahmi Amla . It recently hiked prices and hopefully, we will see the effect of this in the current Q3. The company has been on the lookout for an acquisition in the personal care segment and this could be the next trigger for the stock in the coming days – not just for the stock but for the company to get onto a higher growth trajectory. The company enjoys high investor fancy and stock price is expected to remain buoyant.