Shares that had previously been range-bound experienced a significant surge in momentum.
Indian headline indices started the trading session on a notably lower note, but a remarkable recovery saw them stabilise as consumer durables, metals, and the auto sectors rallied, effectively mitigating early losses. The broader indices displayed superior performance, boasting a robust advance-decline ratio that strongly favoured advances over declines.
Shares of Bajaj Electricals Ltd experienced positive momentum, surging by an impressive 8% in the initial trades of the session. Investor optimism was clearly on display following the company’s announcement of securing a substantial service contract from Power Grid Corporation of India Limited, amounting to a substantial Rs 564.20 crore.
For over two years, the shares of the company had been trading within a relatively narrow range, with the 52-week high reaching Rs 1,247 per share on the BSE. Considering the company’s quarterly performance, on a consolidated basis it reported a modest decline of 1.51% from Rs 1,129.19 crore registered in Q1FY23, recording total revenue of Rs 1,112.13 crore in Q1FY24. Compared to the same quarter last year, the net profit for the first quarter of FY24 fell 13.57%, from Rs 42.96 crore to Rs 37.13 crore.
Conversely, the company delivered an outstanding annual performance, achieving a remarkable 73% growth in net profit for the financial year ending in March 2023, when compared to the preceding year.
Bajaj Electricals Limited, a prominent member of the esteemed Bajaj Group of companies, is a key player in the Fast-Moving Electrical Goods (FMEG) industry. The company has a wide-ranging portfolio that encompasses consumer products, including appliances, fans, and lighting. Additionally, it operates in the export segment and excels in Engineering, Procurement, and Construction (EPC) with a focus on illumination, transmission towers, and power distribution.
Furthermore, Bajaj Electricals extends its footprint into premium home appliances and cookware markets with renowned brands such as Morphy Richards and Nirlep, thereby diversifying its product offerings and enhancing its presence in the consumer goods market.
Keep a close eye on this stock for the upcoming trading sessions!
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.