Shares of fan-cooler manufacturing company gave 350% return, ‘will go higher now’

New Delhi. Shares of Bajaj Electricals, an electrical products manufacturing company, have given tremendous returns in the last 4 years. The company’s shares have risen by 358 percent in 4 years. At the same time, this stock has gone up by 430 percent in the last 8 years. Today the price of this stock has gone up to Rs 1050. On Wednesday, Bajaj Electricals’ shares closed with a decline of 1.50 percent. But brokerages still see strength in this stock.

Domestic brokerage firm HDFC Securities has said that the rise in this stock may continue. According to the brokerage, the company will benefit from the increasing demand for electrical products. The brokerage says that the company has a good hold in the market of fast moving electrical goods. According to the brokerage, the company has a good hold in rural areas compared to its counterparts and the company will benefit from the improvement in demand there. The company has a good distribution network. Also, the company has an 80-year-old legacy which also gives it the trust of the people.

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How far will the share price go
The brokerage believes that this stock is still trading at a much lower price than its peers. HDFC Securities has said that its current price is 28 times higher than FY27 EPS (earnings per share) which is lower than other companies in the same segment. The brokerage has given it a buy rating with a target price of Rs 1200. This target means that the stock can go up by about 14 percent from the current price.

Financial position of the company
The company got a revenue of Rs 1211 crore in the last quarter of the last financial year, whereas in the same quarter of the previous financial year, the company’s revenue was Rs 1313 crore. Talking about profit, the company had a profit of Rs 29 crore in the March quarter, which was Rs 52 crore in the same quarter a year ago. The company’s market cap at the current share price is Rs 12251 crore.

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