Bajaj Electricals Ltd. | Asia Pacific Risk Reward Update

Research evidence excerpt

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M

Update

August 11, 2026 09:46 AM GMT

Morgan Stanley India Company Private Limited+

Bajaj Electricals Ltd. | Asia Pacific

Girish Achhipalia

Equity Analyst

Risk Reward Update

What’s Changed

Bajaj Electricals Ltd. (BJEL.NS)

From

To

Price Target

Rs359.00

Rs335.00

Bull Case

Rs594.00

Rs558.00

Base Case

Rs362.00

Rs336.00

Bear Case

Rs265.00

Rs252.00

Updated Components

EPS

Investment Thesis

Bull Base Bear Scenarios

Bajaj Electricals Ltd. (BJEL.NS, BJE IS)

India Industrials | India

Stock Rating

Industry View

Price target

Shr price, close (Aug 10, 2026)

52-Week Range

Fiscal Year Ending

Risk Reward for Bajaj Electricals Ltd. (BJEL.NS) has been

updated.

Reason for change

EPS (Rs)**

Prior EPS (Rs)**

Underweight

In-Line

Rs335.00

Rs363.10

Rs653.80-301.00

03/26 03/27e 03/28e 03/29e

0.03

5.50

12.86

14.78

16.16

17.12

21.16

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

** = Based on consensus methodology

e = Morgan Stanley Research estimates

We lower F27e and F28e EPS by 13% and 6%, respectively.

• Consumer Products: We build in 10% revenue CAGR (F26-F29e) and EBIT

margins at 4.4%, 4.9% and 5.4% for F27-29, respectively.

• Lighting: We build in 8% revenue CAGR (F26-F29e) and EBIT margins at

7.7%, 8.7% and 9.7% for F27-29, respectively.

Lower price target to Rs335 from Rs359: This reflects:

• Our earnings estimate cuts.

• Raising cost of equity assumption to 12.8% from 12.7% as we mark risk-free

rate to 6.8% from 6.7%; beta and market risk premium unchanged at 1x and

6%, respectively.

• Net income CAGR: 2029-33 at 15% vs 16% earlier; 2034-38 at 14% vs 15%

earlier; and 2039-43 at 13% vs 14% earlier.

• Dividend payout: 2029-33 at 35% vs 40% earlier; 2034-38 at 38% vs 45%

earlier; and 2039-43 at 40% vs 50% earlier.

• Terminal RoE: Bull at 22% vs 27% earlier; Base at 18% vs 21% earlier; and

Bear at 16% vs 19% earlier.

• Rolling valuation forward to Sep-28 from Dec-27.

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