AC Choksi Share Brokers Private Limited - Myiris.com

A C Choksi
Share Brokers Private Limited
INITIATION REPORT | BAJAJ CORP LTD. Sept 09, 2011
Financial Projections:
Revenue to grow at 2-year CAGR of 21.3% by FY13:
We expect market share of ADHO to increase going forward driven by its strong
brand positioning, conversion from loose oils/coconut oil/amla oil users to ADHO
and wider and deeper distribution network. Further, KPCO is expected to garner
healthy traction in cooling oil category due to its product differentiation properties. In
addition, Bajaj Corp is exploring options to extend its brand into high growth and high
margin hair care and/or personal care categories to capitalize upon its brand equity and
for optimum utilization of its wide spread distribution network. The company has
sufficient cash, raised through IPO, to fund any inorganic or organic growth plans.
Foray into cooling oil category and expansion in other categories will reduce its
dependence on its core product ADHO. Hence, we believe Bajaj Corp is well on track
for a steady revenue growth momentum. Going forward, overall revenues of the
company are expected to grow at 2-year CAGR of 21.3% by FY13.
6000
5000
4000
3000
2000
1000
0
Revenue & Revenue Growth
FY10 FY11 FY12E FY13E
Total Sales Sales Growth
Source: Company, A C Choksi Institutional Research
A C Choksi Institutional Research 21
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%