STOCK IN FOCUS
* Bajaj Corp closed 2.3% up in trade at Rs390 compared to 1% increase in the benchmark Nifty ff The company is the market leader in light hair oil market with volume share of 58%
* Although 4QFY17 numbers were impacted by demonetization and weak consumer demand, we expect recovery in the coming quarters on back of good monsoon, increased distribution network and rollout of GST.
* We expect Bajaj Corp to report revenues of Rs9.9bn and Rs11.3bn and net profit of Rs2.7bn and Rs3.1bn in FY18E and FY19E, respectively.
* Based on expected EPS of Rs21, the stock currently trades at attractive valuations of 18.5x FY19E earnings
* Considering the Company’s market leadership and pricing power, coupled with attractive valuations, we maintain our BUY recommendation on the stock with a Target Price of Rs463
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