Bajaj Corp - Nourishing growth - Edelweiss

Bajaj Corp's strong brand equity in the light hair oil (LHO) category renders it a lucrative play in the consumer goods space. The company has attained a strong sustainable volume growth, dominance and pricing power of its flagship brand Almond Drops (ADHO). Its foray into the fastgrowing cooling hair oil segment and continuous distribution expansion should support an earnings CAGR of 18.1% over FY13-15E.

The key risk/concern could be its reliance on a single product and raw material price inflation.

We initiate coverage with 'BUY'.

Source : Equity Bulls

Keywords