Bajaj Consumer Care Downgraded to 'Sell' by MarketsMOJO, Poor Long-Term Growth and Declining Profits

Bajaj Consumer Care, a smallcap FMCG company, has recently been downgraded to a 'Sell' by MarketsMOJO on October 22, 2024. This decision was based on the company's poor long-term growth, with an annual operating profit growth rate of -12.93% over the last 5 years. In addition, the company's results in June 2024 showed a decline in PBT LESS OI(Q) at Rs 34.13 crore, a decrease of -24.56%, and a fall in PAT(Q) at Rs 37.12 crore, a decrease of -19.7%. The net sales also saw a decline of -8.97% at Rs 245.94 crore.
Not only has the company underperformed in the long term, but it has also generated -8.60% returns in the last 1 year, underperforming the BSE 500. The technical trend for the stock is currently sideways, indicating no clear price momentum. This trend has worsened since October 22, 2024, when it was mildly bullish, and has resulted in -3.84% returns.

However, there are some positive factors to consider. Bajaj Consumer Care has a high management efficiency with a ROE of 23.01% and a low debt to equity ratio of 0 times. The stock is also trading at an attractive valuation with a price to book value of 3.7, which is in line with its historical average. Additionally, the company has a high institutional holding of 31.58%, indicating that these investors have better resources to analyze the company's fundamentals.

In conclusion, while Bajaj Consumer Care may have some positive aspects, the recent downgrade to 'Sell' by MarketsMOJO and its poor long-term performance suggest caution for potential investors.