Bajaj Consumer Care Q4 Results - Improving Trajectory; Case Of 'Trapped Value': ICICI Securities

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ICICI Securities Report

Bajaj Consumer Care Ltd.'s Q4 volume grew by ~43% (our estimate; 2-year Compounded Annual Growth Rate is flat).

The improving fundamentals will likely (continue to) drive stock re-rating, in our view.

Final dividend (announcement) of Rs 4 (total of Rs 10 for FY21) further allays consensus concerns (if any) on cash utilisation.

Q4 revenue grew 40% (2-year CAGR of 1%).

We like the renewed thrust on:

1. product relaunch (upgraded formulation)

2. new stock keeping units (filling white spaces)

3. communication (integrated campaign, thrust on digital and improved brand visibility across retail outlets)

4. focus on categories beyond ADHO (Amla (gooseberry) market share gains through distribution expansion, new product launches).

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