Bajaj Consumer Care Limited

Consumer Defensive — Household & Personal Products · NSE

₹469.70+₹1.20 (+0.26%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of Bajaj Consumer Care Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Bajaj Consumer Care Limited manufactures, markets, and distributes hair care, cosmetics, toiletries, and other personal care products in India and internationally.

IndustryHousehold & Personal Products

SectorConsumer Defensive

Employees476

Annual revenue₹1,153 Cr

How does it make money?

Turns over ₹1,153 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹21 left at the operating level before interest, tax and depreciation. Each of its 476 employees supports ₹2.42 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin21.2%

Net margin16.5%

Revenue / employee₹2.42 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., DABUR INDIA LTD, ITC LTD, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

HINDUSTAN UNILEVER LTD.P/E 42.5x · ROE 21.5%

DABUR INDIA LTDP/E 34.7x · ROE 17.2%

ITC LTDP/E 16.6x · ROE 27.4%

BRITANNIA INDUSTRIES LTDP/E 44.1x · ROE 51.0%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 30.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 32.5% against a peer median of 27.4% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE30.2%

ROE32.5%

Peer median ROE27.4%

What is the outlook?

6 analysts covering the stock expect revenue to grow about 12.1% and earnings to grow about 11.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+12.1%

Est. earnings growth+11.4%

Analysts6

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +22% while net margin moved +12% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+22%

Margin effect+12%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.93 — moves roughly with the market
✗ Small Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings

Quality vs. Valuation

Company Quality

73/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

54/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

24.7x

3Y Median

25.5x

40 monthly readings · mean 28.8x · range 14.3x–66.3x

Sector Median

38.6x

median of 4 sector peers

🟡Currently trading close to its 3y median of 25.5x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 36% below the peer median of 38.6x.

vs. its own history

Fair

25.5x median over 40 months · -3%

vs. sector peers

Cheap

38.6x median of 4 peers · -36%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

24.7x

P/B

6.84x

EV/EBITDA

25.0x

PEG

2.26

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 18.9% to 21.2% over 3 years.
Cash generation is improving
Free cash flow is up 72% over 3 years.
Return on equity is rising
ROE has improved from 17.6% to 25.2%.
Return on capital is rising
ROCE has improved from 21.2% to 30.2%.
High return on capital employed
ROCE of 30.2% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 70% over 3 years — worth checking what it funded.
Receivables growing faster than sales
Receivables are up 148% against revenue growth of 22% — customers are taking longer to pay.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 70% over 3 years, from ₹9 Cr to ₹16 Cr.
🔴High leverageFinancial
Debt/Equity of 1.50x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 148% against revenue up 22% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 30.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 18.9% to 21.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 36% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Leverage amplifies any setback
Debt/Equity of 1.50x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 148% against revenue up 22%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 6.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 19%✓ 21.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 5% a year✓ 6.7% CAGR
Latest reported year was 25.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹163 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 27%✓ 30.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹6,135 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

24.7x

Fair

Fairly valued against the generic band

P/B Ratio

6.84x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹18.98

Profitable

Profitable on a per-share basis

ROE

32.5%

Strong

Strong capital efficiency

ROCE

30.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.50x

High

High leverage

Revenue Growth (YoY)

25.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

73.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹171 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹469.7

P/E (Forward)

20.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

18.4%

Good

Assets are working hard

Operating Margin

23.6%

Good

Healthy core-business profitability

Net Margin

19.3%

Good

Strong bottom-line conversion

Current Ratio

4.56

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.93

Market-like

Moves roughly in line with the market

52W Range Position

51%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

496.4 / 499.2

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

43.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹949 Cr	₹968 Cr	₹950 Cr	₹1,153 Cr	+6.7%
EBITDA	₹180 Cr	₹196 Cr	₹160 Cr	₹245 Cr	+10.8%
EBITDA Margin	18.9%	20.2%	16.8%	21.2%	—
PAT (Net Profit)	₹139 Cr	₹155 Cr	₹125 Cr	₹190 Cr	+11.0%
EPS	₹9.47	₹10.89	₹9.03	₹14.21	+14.5%
ROE	17.6%	18.7%	16.7%	25.2%	—
ROCE	21.2%	22.6%	20.3%	30.2%	—
Total Debt	₹9 Cr	₹9 Cr	₹4 Cr	₹16 Cr	+19.4%
Free Cash Flow	₹95 Cr	₹112 Cr	₹59 Cr	₹163 Cr	+19.8%

🟢 Revenue has grown at 6.7% a year over 3 years.

🟢 EBITDA has grown at 10.8% a year over 3 years.

🟢 EBITDA Margin has risen from 18.9% to 21.2% over 3 years (+2.3 pts).

🟢 PAT (Net Profit) has grown at 11.0% a year over 3 years.

🟢 EPS has grown at 14.5% a year over 3 years.

🟢 ROE has risen from 17.6% to 25.2% over 3 years (+7.6 pts).

🟢 ROCE has risen from 21.2% to 30.2% over 3 years (+9.0 pts).

🔴 Total Debt has grown at 19.4% a year over 3 years.

🟢 Free Cash Flow has grown at 19.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹945 Cr

Total Liabilities

₹190 Cr

Total Debt

₹16 Cr

Cash & Equivalents

₹22 Cr

Operating Cash Flow

₹197 Cr

Capex

-₹33 Cr

Shareholding (proxy)

Institutional Holding

22.6%

Insider Holding

44.0%

Corporate Actions

Ex-Dividend Date

16 Feb 2024

Analyst Consensus

Recommendations

7 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹641.25

+36.5% vs CMP

Target Range

₹410 – ₹975

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
DABUR INDIA LTD	34.7x	17.2%
ITC LTD	16.6x	27.4%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

2 positive4 mixed

Bajaj Consumer Care Share Price and Q2 Fundamental Analysis

Univest, 15 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Earnings call transcript: Bajaj Consumer Care posts strong Q2 2027 growth, shares fall

Investing.com India, 15 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Bajaj Consumer Care Share Price Drops

Kalkine India, 15 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Bajaj Consumer Care Q2 Net Profit Surged 66% to Rs 70 Cr

HDFC Sky, 15 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Bajaj Consumer Care Q2 Results: Profit jumps 66% YoY to Rs 70 crore, revenue rises 25%

The Economic Times, 14 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Bajaj Consumer Care Q2 results: Net profit soars 66% YoY to ₹70 crore, EBITDA grows 71%

Upstox, 14 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong17.9/20

🟡Financial HealthAdequate12.5/20

🟡GrowthModest10.4/20

🟢ProfitabilityStrong13.5/15

🟡ValuationFair7.7/15

🔴RiskHigh4.1/10

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 19%21.2%
✓Revenue growth stays above 5% a year6.7% CAGR
✓Free cash flow remains positive₹163 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 27%30.2%