Bajaj Electricals Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹300.90−₹5.80 (−1.89%)

DalalBaazaar Score

29 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

High

Driven by moderate debt load, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, with modest growth. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Bajaj Electricals Limited provides consumer products and lighting solutions in India.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees1,500

Annual revenue₹4,448 Cr

How does it make money?

Turns over ₹4,448 Cr a year. Of every ₹100 of sales, about ₹-2 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 1,500 employees supports ₹2.97 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.97 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -1.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE17.1%

What is the outlook?

7 analysts covering the stock expect revenue to grow about 10.7% and earnings to grow about 33.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+10.7%

Est. earnings growth+33.4%

Analysts7

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -9% while net margin moved -146% 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-9%

Margin effect-146%

DalalBaazaar Score

29/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 3.0% a year

Quality vs. Valuation

Company Quality

26/ 100

Weak

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

Valuation

31/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

19.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Cash generation is improving
Free cash flow is up 45% over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 11.3% to -5.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 16.8% to -1.9% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 58% over 3 years, from ₹101 Cr to ₹159 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.6x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹91 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 3.6x to -0.6x.
🟡Margins are compressingFinancial
EBITDA margin is down 4.7 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 8.6% to 3.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 11.3% to -5.7%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro 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 2%✓ 3.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -0.6x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹532 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ -1.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

2 good · 5 neutral · 4 weak

Market Cap

₹3,473 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

2.18x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-3.77

Loss-making

Negative earnings per share — the business is losing money

ROE

-5.7%

Weak

Weak capital efficiency

ROCE

-1.9%

Weak

Low return on total capital employed

Debt/Equity

1.05x

Moderate

Moderate leverage

Revenue Growth (YoY)

2.3%

Modest

Modest growth

Profit Growth (YoY)

5125.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.00%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹532 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

18.9x

Operating Margin

4.3%

Weak

Thin margins leave little room for error

Net Margin

-1.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.11

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.04

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

308.7 / 330.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

33.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4,868 Cr	₹4,622 Cr	₹4,816 Cr	₹4,448 Cr	-3.0%
EBITDA	₹417 Cr	₹343 Cr	₹360 Cr	₹172 Cr	-25.6%
EBITDA Margin	8.6%	7.4%	7.5%	3.9%	—
PAT (Net Profit)	₹216 Cr	₹131 Cr	₹133 Cr	-₹91 Cr	—
EPS	₹18.77	₹11.37	₹11.56	₹-7.88	—
ROE	11.3%	9.1%	7.7%	-5.7%	—
ROCE	16.8%	13.9%	11.9%	-1.9%	—
Total Debt	₹101 Cr	₹215 Cr	₹243 Cr	₹159 Cr	+16.4%
Free Cash Flow	₹368 Cr	₹223 Cr	₹293 Cr	₹532 Cr	+13.1%

🔴 Revenue has shrunk at 3.0% a year over 3 years.

🔴 EBITDA has shrunk at 25.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 8.6% to 3.9% over 3 years (-4.7 pts).

🔴 PAT (Net Profit) has turned negative, from ₹216 Cr to -₹91 Cr.

🔴 EPS has turned negative, from ₹18.77 to ₹-7.88.

🔴 ROE has fallen from 11.3% to -5.7% over 3 years (-17.0 pts).

🔴 ROCE has fallen from 16.8% to -1.9% over 3 years (-18.8 pts).

🔴 Total Debt has grown at 16.4% a year over 3 years.

🟢 Free Cash Flow has grown at 13.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,260 Cr

Total Liabilities

₹2,666 Cr

Cash & Equivalents

₹222 Cr

Operating Cash Flow

₹619 Cr

Capex

-₹87 Cr

Shareholding (proxy)

Institutional Holding

21.3%

Insider Holding

63.0%

Corporate Actions

Next Earnings

28 Oct 2026

Dividend Rate

₹3

Ex-Dividend Date

17 Jul 2026

Analyst Consensus

Recommendations

5 Buy · 5 Hold · 3 Sell

Target Price (Mean)

₹390.5

+29.8% vs CMP

Target Range

₹302 – ₹520

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

3 positive1 mixed2 general

Bajaj Electricals Share Price News on Today’s Strong Move

Univest, 15 Oct

Why Bajaj Electricals Fell Even As Profit Rose

Simply Wall Street, 13 OctResults

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

Bajaj Electricals Q1 FY27 results: Net profit registers massive jump to ₹48 crore, revenue rises 2% YoY

Upstox, 06 AugResults

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

Bajaj Electricals Share Price Jumps 16% After Q1 Profit Swells, Margin Surges

NDTV Profit, 06 AugResults

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

Bajaj Electricals Shares Jump 9% on Strong Q1 Profit

Equitypandit, 06 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Bajaj Electricals Ltd is Rated Sell

MarketsMojo, 15 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑