Bajaj Healthcare: Weak Q1 not a dampener for long run

Capacity ramp-up and new business opportunities should stand Bajaj Healthcare in good stead; any correction a scope to buy

Sachin Pal
September 07, 2022 / 09:54 AM IST
Bajaj Healthcare: Weak Q1 not a dampener for long run

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PRO Only Highlights
-  Quarterly performance largely backed by improved realisations
-  Medium-term triggers China plus and protectionist measures for tyre industry
-  Valuations not inexpensive; but improved medium-term outlook

Bulk drug manufacturer Bajaj Healthcare (BHL) reported a lacklustre set of numbers for Q1 FY23. While the company saw a moderate decline in revenues, operating margins stabilised on a sequential basis (quarter-on-quarter). Result snapshot In Q1, BHL’s revenues declined 8 percent year on year (YoY) to Rs 172 crore primarily due to the contraction of Covid-19 related opportunities.  Operating margins continued to suffer on account of adverse changes in the product mix, normalisation of prices after the initial COVID spike, and...