1. At a Glance
Bajaj Consumer Care Ltd, the proud parent of India’s favourite non-sticky hair oil (Almond Drops), is currently doing the corporate equivalent of self-care — announcing a ₹186.6 crore buyback and a demerger, all while EPS trims itself like split ends. The share trades at ₹228, miles below the ₹290 buyback price, making the market look like it missed the memo. But before you pour almond oil in your tea to celebrate, note that operating profit margins have slipped from a once-majestic 28–34% to a humble 13%. It’s like watching a Bollywood star go from box office king to reality show judge.
2. Introduction
There was a time when Bajaj Almond Drops Hair Oil could command premium shelf space and the OPM could swagger into the high 30s. Now, the company finds itself in a more delicate position — still profitable, still paying dividends, but having to publicly declare a buyback to get some market love.
The FMCG game has shifted. Competition from homegrown brands, D2C disruptors, and multinational muscle has kept volume growth dull. Over the past 5 years, sales CAGR is a limp 3% and profit CAGR is -8%. Yet, Bajaj Consumer is debt-free, still posting a double-digit ROE (~16%), and has a loyal rural and semi-urban consumer base that hasn’t entirely moved on to serums and fancy organic blends.
The stock’s trailing P/E sits at 26.3, based on a fresh annualised EPS from Mar–Jun 2025 quarter — not cheap compared to FMCG heavyweights, but it’s still in “mid-cap FMCG purgatory” territory.
3. Business Model (WTF Do They Even Do?)
Bajaj Consumer Care is essentially a one-product wonder that decided to stretch its brand equity into multiple hair care and personal care SKUs. Almond Drops Hair Oil is the crown jewel — positioned as a light, non-sticky premium oil. The
company also dabbles in Ayurvedic blends (Brahmi Amla, Amla Aloe Vera, Sarson Amla, Coco Onion) and 100% pure coconut oil, which has been quietly gaining share in certain states.
Internationally, the brand is present in ~30 countries, mostly catering to Indian diaspora markets. The rest of the portfolio — shampoos, conditioners, serums — exists, but is more like the side characters in a sitcom: necessary, but rarely the star of the episode.
4. Financials Overview
Let’s annualise the latest quarterly EPS (Q4 FY25 ended Mar) for a fresh P/E calculation.
- Q4 FY25 EPS = ₹2.17 → Annualised = ₹8.68
- CMP ₹228 → Fresh P/E = 26.27 (matches screen, yay maths)
FY25 Performance:
- Revenue: ₹965 Cr (↓ 1.9% YoY)
- EBITDA: ₹128 Cr (↓ 17.4% YoY)
- PAT: ₹125 Cr (↓ 19.3% YoY)
- OPM: 13% (vs 16% in FY24)
Commentary: FMCG with shrinking margins is like a cricket batsman scoring fewer runs each season but insisting they’re “working on technique.” Volumes are flattish, costs are sticky, and premiumisation alone isn’t paying the bills.
5. Valuation
Method 1 – P/E Based:
Median FMCG P/E ~55. Bajaj Consumer’s historic P/E band: 20–35.
Fair Value (based on FY25 EPS ₹8.77):
- Lower band (20x): ₹175
- Upper band (35x): ₹307
Method 2
