News: To unlock value of its consumer and EPC business segments, Bajaj Electrical’s Board has approved corporate restructuring. The management will evaluate options and alternatives including demerger, subsidarisation, strategic partnerships etc considering EPC business as standalone entity.
Views: We believe the move will help Bajaj Electrical streamline its business structure and help focus on growing its core consumer business. The consumer business is likely to grow at 14% CAGR over FY21-24E with improved margin profile. We value company’s consumer business at Rs.1249/share which is 37xFY24E earnings and EPC at 7x of FY24 earnings to | 31/share. We await further announcements on the restructuring plans.
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