ICICI Securities has placed a robust BUY call on Bajaj Consumer Care, maintaining its conviction amid a shifting consumer landscape. The research house has set a target price of Rs 400 for this consumer staples stalwart, projecting significant upside from current levels. Bajaj Consumer’s strategic pivot under new Managing Director Naveen Pandey—whose pedigree includes transformative tenures at Asian Paints, PepsiCo, Marico, and Unibic—underscores a relentless focus on margin expansion, brand revitalization, and incremental innovation. Investors are urged to note essential earnings forecasts and the company’s enhanced approach to distribution and long-term capability investment.

ICICI Securities Reiterates BUY Call

ICICI Securities maintains its BUY stance on Bajaj Consumer Care. The brokerage sees strong prospects for the company’s resurgence under the stewardship of Naveen Pandey, effective July 2025, with an assertive target price of Rs 400—an uplift from the current market price of Rs 258. This represents a potential appreciation exceeding 55% over the next year, with the stock expected to trade at a premium 32x PE by Mar 2027.

Leadership Renaissance

Naveen Pandey ushers fresh acumen and strategic rigor. With a remarkable track record across Asian Paints, PepsiCo, Marico Bangladesh, and Unibic India, Pandey is widely credited for orchestrating profit- and growth-focused transformations. His legacy includes scaling brand operations, instituting techno-commercial efficiency, driving supply chain innovation, and executing cost-saving initiatives that have dynamically recalibrated distribution productivity. Bajaj Consumer now leverages Pandey’s deep institutional and retail sales experience for aggressive growth and organizational renewal.

Essential Financial Highlights and Stock Levels

Robust projections spotlight revenue and margin uptick for investors. The report forecasts net revenues climbing from Rs 9,428 million in FY25 to Rs 11,072 million by FY27. EBITDA margins are predicted to expand from 14.0% to 16.5% across this period, while net profits are set to surge to Rs 1,793 million by FY27. The estimated earnings per share (EPS) will rise from Rs 9.1 in FY25 to Rs 12.6 in FY27, underpinning an attractive total return profile for informed investors.

Product Innovation Imperative

Incremental innovation and digital channels drive future launches. Bajaj Consumer is avoiding wide-scale, undifferentiated rollouts—instead, it prioritizes incremental innovation with a keen eye on scalability and profitability. The company prefers targeted launches via alternative and digital channels, eschewing traditional general trade, and leverages robust R&D investment to sustain competitive advantage. This philosophy is expected to mitigate risks from exposure to a single flagship brand, hair oil segment ADHO.

Shareholding Pattern Reflects Institutional Confidence

Promoters retain a controlling stake, institutional investment remains significant. As of June 2025, promoters command a 41% shareholding, while institutional investors account for 27.8%. Mutual funds and insurance companies, along with FIIs, collectively hold over 27%. Growing institutional participation signals confidence in Bajaj Consumer’s refreshed strategy and governance standards.

Strategic Priorities for Accelerated Growth

Margin expansion, brand equity, and channel efficiency headline strategy. Pandey’s agenda at Bajaj Consumer comprises aggressive margin improvement toward industry norms (EBITDA margins in the low twenties), concentrated investment in ADHO brand revival, and judicious supply chain management. The company’s operating model is geared toward long-term capability building—focusing on people, technology, and scientific innovation to sustain momentum.

Risks and Investor Considerations

Single-brand risk and commodity inflation still loom. Despite its strengths, Bajaj Consumer faces downside risks from excessive reliance on its flagship ADHO brand and the threat of commodity price escalation. An inability to execute new product launches effectively could also dampen the growth trajectory, making vigilant portfolio diversification crucial for long-term investors.

Stock Price Levels and Investment Targets

Buy decisively for an anticipated Rs 400 target. ICICI Securities recommends accumulating Bajaj Consumer Care at or below Rs 258, with clear upside seen in the 8–12 month horizon. Investors should monitor Rs 300 as an intermediate resistance and Rs 263 as the 52-week upper range. A breach beyond these levels opens the path toward Rs 400, with prudent stop loss at Rs 220 for risk-managed entries.