Bajaj Corp

A desi FMCG company, its brand equity is pretty strong with products like Bajaj Almond Drops, Bajaj Brahmi Amla, Bajaj Amla Sheekakai, and Bajaj Kailash Parbat that have been in the market for eight decades and it is part of one of the oldest business houses of the country. A part of the Shishir Bajaj Group of companies, a debt free company, it posted a very dull set of numbers for Q3FY16.

For the quarter, on a meagre 3.5% (YoY) rise in net sales at Rs.213 crore, its net profit showed a 19% growth at Rs.50 crore. Overall volumes showed a 3% increase at 13.4 lakh cases.

EBITDA was up 14% at Rs.69 crore while margins rose from 29.24% to 32.35%. This jump in margins was mainly on account of the drop in raw material costs. During Q3, average price of LLP decreased to Rs.54.70/kg from Rs.75.01/kg and this helped boost the margins. On the other hand, average price of Refined Oil increased to Rs.93.76/kg v/s Rs.70.92/kg (YoY). Advertising costs were down 13%. NPM came in at 23.31% v/s 20.37%.

Bajaj Corp is debt free company with cash per share of Rs. 26.