Bajaj Electricals Limited (BAJAJELEC) AI Stock Analysis

• Market Cap: ₹39.49B
• Dividend Yield: 0.62%
• Average Volume (3M): 60.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 0.80%
• EPS Growth: -4.31%
• Country: IN
• Employees: 1,958
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -3.00
• Shares Outstanding: 115,388,440
• 10 Day Avg. Volume: 21,424
• 30 Day Avg. Volume: 60,840
• PEG Ratio: 38.64
• Price to Book (P/B): 3.66
• Price to Sales (P/S): 1.31
• P/FCF Ratio: 18.47
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹449.00
• Price Target Upside: -4.81% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.57
• Revenue Forecast (FY): ₹45.34B

• Rating: 59 Neutral
• Price Target: ₹374.00 ▼(-20.71% Downside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is supported primarily by solid underlying financial performance, especially strong operating cash flow versus net income and generally stable leverage. This is meaningfully offset by weak technicals (price below key moving averages with negative MACD) and an expensive valuation (very high P/E with low yield).

Positive Factors

Diversified revenue mix (consumer + projects)

The company combines branded consumer products (fans, lighting, appliances) with institutional lighting solutions and project work. This diversification reduces dependence on any single channel, creates institutional contract revenues that are stickier than retail, and smooths demand volatility over a multi-month horizon.

Strong operating cash flow and FCF conversion

Operating cash flow materially exceeding net income and favorable FCF conversion signal robust cash generation. That durability supports capex, working-capital needs and project execution without heavy external financing, preserving strategic flexibility and resilience to cyclical sales swings.

Manageable leverage with positive ROE

A reasonable debt-to-equity profile combined with positive ROE indicates balanced leverage and effective capital deployment. This lowers refinancing risk, maintains financial flexibility to fund projects or channel investment, and supports stability through near-term revenue or margin variability.

Negative Factors

Declining EBIT / EBITDA margins

Pressure on EBIT and EBITDA margins suggests rising costs or weaker operating leverage. Persistent margin erosion reduces core earnings power, limits reinvestment and cash available for growth initiatives, and makes profits more sensitive to input-cost increases across consumer and project businesses.

Latest-year revenue dip

A recent decline in top-line growth interrupts a longer-term growth trend and may indicate softer retail demand or competitive share loss. Continued revenue softness would erode scale advantages, constrain margin recovery efforts, and make maintaining operating cash flow generation more challenging over months ahead.

Sharp EPS decline / earnings volatility

A roughly 65% drop in reported EPS points to significant near-term profitability stress or one-off impacts. Such earnings volatility reduces retained earnings available for reinvestment or payouts, increases uncertainty about sustainable profitability, and raises execution risk for strategic initiatives.

Bajaj Electricals Limited Business Overview & Revenue Model

Company Description

Bajaj Electricals Limited engages in the consumer durables; and engineering, procurement, and construction businesses in India. It operates through Consumer Products; Engineering & Projects; and Others segments. The company offers various appliances, including toasters, mixer-grinders, food processors, juicer mixer grinders, choppers and hand blenders, snack makers, wet grinders, oven toaster grill, microwave ovens, electric kettles, induction cookers, rice cookers, pressure cookers, gas stoves, non-electric kitchen appliances, irons, storage water heaters, pans and tavas, gas water heaters, instant water heaters, room heaters, air coolers, coffee makers, pop-up toasters, and electric cookers. It also provides various fans comprising ceiling, pedestal, table, wall, personal, and domestic exhaust fans, as well as air circulators. In addition, the company offers lighting products, including LED lamps, battens, panels, and electrical accessories. Further, it is involved in the design, engineering, supply, execution, and commissioning of power distribution and transmission projects, as well as illumination. Additionally, the company generates wind energy. It operates approximately 2,30,000 retail outlets. Bajaj Electricals Limited exports its products to Sri Lanka, Bangladesh, Singapore, Myanmar, Mauritius, Nigeria, Ethiopia, Uganda, Ghana, Tanzania, Madagascar, Kenya, Egypt, the United Arab Emirates, Oman, Bahrain, Iraq, Jordan, and other countries. The company was formerly known as Radio Lamp Works Limited and changed its name to Bajaj Electricals Limited in October 1960. The company was incorporated in 1938 and is headquartered in Mumbai, India.

How the Company Makes Money

Bajaj Electricals generates revenue through several key streams: the sale of electrical consumer products such as household appliances and lighting solutions, the provision of engineering and project services, and the sale of products related to power transmission and distribution. The company's revenue model is supported by a combination of direct sales, retail partnerships, and distribution agreements, enabling it to reach a wide customer base. Significant partnerships with retail chains and e-commerce platforms enhance its market presence and sales potential. Additionally, government contracts and infrastructure projects in the engineering segment contribute substantially to its earnings, particularly in renewable energy and smart city initiatives.

Bajaj Electricals Limited Financial Statement Overview

Summary

Overall financials are solid: consistent revenue growth (despite a slight latest-year dip) and strong operating cash flow/FCF conversion support durability. Balance sheet leverage is described as manageable with positive ROE, but profitability is a constraint due to declining EBIT/EBITDA margins.

Income Statement

Bajaj Electricals Limited has shown consistent revenue growth over the years with a slight dip in the latest year, reflecting resilience in the furnishings and appliances sector. The company maintains a healthy gross profit margin, although net profit margins are slightly constrained by expenses, as seen in the declining EBIT and EBITDA margins. Despite this, the revenue growth rate has been positive, indicating robust sales performance.

Balance Sheet

The balance sheet reflects a stable financial position with a reasonable debt-to-equity ratio, suggesting balanced leverage. Return on equity shows positive returns, although the equity ratio indicates room for enhancing equity levels further. The company's liabilities are well-managed, supporting a solid financial foundation.

Cash Flow

Cash flow analysis reveals strong operating cash flows well above net income, indicating effective cash management and operational efficiency. Free cash flow to net income ratio is favorable, and despite fluctuations in free cash flow growth, the company maintains strong liquidity and investment potential.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	47.18B	48.28B	46.22B	48.68B	48.13B	45.85B
Gross Profit	11.89B	14.94B	13.27B	14.44B	8.52B	12.74B
EBITDA	3.14B	3.62B	3.44B	4.17B	3.05B	3.98B
Net Income	1.03B	1.33B	1.31B	2.16B	1.29B	1.91B
Balance Sheet
Total Assets	39.19B	42.19B	38.33B	46.77B	39.92B	42.68B
Cash, Cash Equivalents and Short-Term Investments	2.78B	5.08B	3.04B	4.09B	1.42B	608.52M
Total Debt	2.15B	2.43B	2.15B	12.88B	907.88M	5.09B
Total Liabilities	22.06B	24.94B	23.92B	27.70B	22.86B	26.89B
Stockholders Equity	17.13B	17.25B	14.41B	19.07B	17.32B	15.78B
Cash Flow
Free Cash Flow	1.11B	3.42B	2.23B	3.65B	8.38B	6.18B
Operating Cash Flow	1.59B	3.47B	3.54B	4.50B	9.14B	6.58B
Investing Cash Flow	733.19M	-1.95B	-2.10B	-880.30M	-705.23M	-1.10B
Financing Cash Flow	-1.26B	-1.46B	-1.33B	-1.39B	-7.71B	-6.04B

Bajaj Electricals Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 471.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BAJAJELEC, the sentiment is Negative. The current price of 471.7 is above the 20-day moving average (MA) of 369.94, above the 50-day MA of 399.72, and below the 200-day MA of 530.71, indicating a bearish trend. The MACD of -10.80 indicates Negative momentum. The RSI at 31.57 is Neutral, neither overbought nor oversold. The STOCH value of 25.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BAJAJELEC.

Bajaj Electricals Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYMPHONY	70 Outperform	₹54.00B	73.49	―	1.43%	-19.72%	-44.03%
IFBIND	63 Neutral	₹40.54B	66.01	―	―	12.08%	28.97%
TTKPRESTIG	63 Neutral	₹66.35B	64.27	―	0.97%	4.48%	-49.18%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
ORIENTELEC	60 Neutral	₹34.49B	36.16	―	0.82%	6.63%	42.16%
BAJAJELEC	59 Neutral	₹39.49B	-40.37	―	0.62%	0.80%	-4.31%
CROMPTON	57 Neutral	₹160.01B	41.30	―	1.16%	0.73%	-5.88%

Bajaj Electricals Limited Corporate Events

Bajaj Electricals Enters Wires Business Under Lighting Solutions Segment

Bajaj Electricals Limited has decided to enter the wires business as a new product line within its Lighting Solutions segment, citing rising demand in the wires industry as a key driver. The company plans to launch wire products shortly and will initially assess market response before finalising the scale of investment, which will depend on business size, operational needs and external conditions. This move signals a strategic diversification aimed at expanding its presence in adjacent electrical categories and potentially strengthening its competitive position in the broader electricals and lighting market, with further updates to be provided to stock exchanges as material developments arise.

Bajaj Electricals Faces Rs 9.36 Crore GST Demand from Tamil Nadu Tax Authority

Bajaj Electricals Limited has disclosed that it received an assessment order from the Commercial Tax Officer in Chennai under the Tamil Nadu Goods and Services Tax Act, 2017, raising an alleged demand of Rs. 936.38 lakh for FY 2018–19. The demand comprises tax, interest, and penalty, largely arising from alleged short payment of tax and disallowance of input tax credit, and the company is evaluating legal options, including an appeal, while stating that any financial impact would be limited to the demanded amount and that there is no effect on its ongoing operations or activities.

Bajaj Electricals Faces Rs 237.9 Lakh GST Demand for FY 2021–22

Bajaj Electricals Limited has disclosed that it received an order from the West Bengal Goods and Services Tax Authority under Section 73(9) of the CGST/WBGST Act, 2017, raising a gross demand of Rs 237.90 lakh, including a general penalty of Rs 12.91 lakh, for alleged short payment of tax for the financial year 2021–22. The company’s management is assessing legal remedies, including the option of filing an appeal before the appropriate tribunal, and has stated that the order does not affect its financial operations or other business activities, indicating that the potential liability is not expected to be materially disruptive for stakeholders at this stage.

Bajaj Electricals Advances CFO E C Prasad’s Relieving Date to December 31, 2025

Bajaj Electricals Limited has announced that its Chief Financial Officer and Key Managerial Personnel, E C Prasad, will now be relieved from his role effective close of business on December 31, 2025, instead of the previously communicated date of January 26, 2026. The Board approved the change via circular resolution at Prasad’s request following completion of his handover of responsibilities and waived the remaining notice period in line with company policy and applicable regulations, signalling an orderly transition in the finance leadership and continued compliance with SEBI disclosure norms.