Buy Bajaj Consumer Care; target of Rs 600: ICICI Securities

About this update from Bajaj Consumer Care Limited

ICICI Securities research report on Bajaj Consumer CareExecution converting into earnings, with BaCo delivering a decisive beat on both growth and margins in Q4FY26. Revenue was driven by healthy ADHO-led volume traction and continued strength across LUP and core packs, supported by rural recovery and an improving channel mix. GM expanded sharply on a favourable product mix and mlage reduction, translating into strong EBITDA expansion despite sustained brand investments. While part of the margin expansion is cyclical, improved execution is enabling better conversion of growth into earnings. Mix-led moderation in margins remains a key monitorable, with recent RM volatility making Q1FY27 an important test for margin sustainability. With reach expansion largely complete and the focus shifting to productivity and portfolio scaling, we reiterate BaCo as our top pick, with strong conviction in management’s execution-focused approach. Maintain BUY.OutlookWe model revenue / EBITDA / PAT CAGR of 12% / 19% / 18% over FY26-28E, respectively. Maintain BUY with a DCF-based revised target price of INR 600 (vs. INR 500); we now incorporate consolidated financials in our model. At our target price, the stock could trade at 32x P/E Mar’28E.Disclaimer: 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 - 2004026 - icici

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