HDFC Securities has maintained its 'Reduce' rating on Bajaj Electricals Ltd. with an unchanged target price of ₹315. According to reports from NDTV Profit, the brokerage's cautious stance reflects ongoing challenges from intense competition and cost pressures despite improving demand trends in the electrical equipment sector.
The brokerage noted that industry demand in Q1 FY27 remains healthy, supported by strong momentum in the southern region and a pickup in northern markets with the onset of summer. As reported by NDTV Profit, Bajaj Electricals has implemented price hikes to offset cost inflation, particularly amid global supply disruptions linked to geopolitical tensions. However, the company continues to face competitive intensity and margin pressures, particularly in its core consumer products segment.
Under its new leadership, Bajaj Electricals is undertaking turnaround initiatives, including clearing excess channel inventory, optimizing costs, and sharply reducing capital expenditure. According to the report, the company is looking to expand its total addressable market (TAM) by entering adjacent segments such as switchgears, solar solutions, and wires & cables. The wires segment, launched in Q4 FY26, has seen encouraging initial traction and could emerge as a key growth driver going forward.
Despite the improving outlook, HDFC Securities remains cautious on Bajaj Electricals, emphasising that execution of turnaround strategies will be the key monitorable for investors. As reported by NDTV Profit, the brokerage's unchanged target price of ₹315 reflects their cautious stance on the company's near-term prospects despite the positive demand trends in the electrical equipment sector.
