Buy Bajaj Consumer Care; target of Rs 400: ICICI Securities

About this update from Bajaj Consumer Care Limited

ICICI Securities's research report on Bajaj Consumer CareDespite GST-led disruption, Bajaj Consumer delivered one of its best-in-class performances in Q2FY26, driven by disciplined execution in ADHO (double-digit value growth) and strong traction in emerging categories/ brands (coconut hair oil and Banjara’s portfolio). The combination of broad-based channel recovery and improving LUP traction (supported by GST) provides clear visibility on sustaining volume growth ahead. Margin delivery remains robust, supported by pricing actions, mix and operational discipline, with further benefits expected as GST-driven affordability gains materialise. With Aarohan strengthening GT coverage and VPCL integration progressing smoothly, the business enters H2 with healthy volume tailwinds, strong margin momentum and improving execution visibility. BUY.OutlookWe increase our earnings by 7-8% for FY26/27E, modelling revenue / EBITDA / PAT CAGR of 11% / 22% / 18% over FY25-28E, respectively. Maintain BUY with a DCF based target price of INR 400. At our target price, the stock could trade at 28x P/E Sep’27E. Downside risks: Over-reliance on a single brand – ADHO; higher-than expected commodity inflation and failure of new product launches.For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.Bajaj Consumer Care_11112025_ICICI Securities

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