Recent Price Movement and Market Context
On 5 December 2025, Bajaj Electricals touched Rs.476, its lowest level in the past year. This price point reflects a continuation of the stock’s downward trajectory, with losses accumulating over the last four consecutive trading sessions. During this period, the stock has recorded a cumulative return of -1.47%. The decline today was marginally below the sector’s average movement, with a day change of -0.38%.
In contrast, the broader market has shown resilience. The Sensex, after an initial negative opening down by 139.84 points, rebounded to close 0.18% higher at 85,421.82. The benchmark index remains close to its 52-week high of 86,159.02, trading just 0.86% below that peak. The Sensex’s 50-day moving average remains above its 200-day moving average, signalling a generally bullish trend for the market overall. Mega-cap stocks have been the primary drivers of this positive momentum.
Technical Indicators Highlight Weakness
Bajaj Electricals is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This broad-based weakness across all key technical levels indicates a lack of upward momentum and suggests that the stock is facing sustained selling pressure. The failure to hold above these averages contrasts sharply with the Sensex’s bullish technical positioning.
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Long-Term Performance and Financial Metrics
Over the past year, Bajaj Electricals has recorded a total return of -39.19%, significantly lagging behind the Sensex’s 4.47% gain during the same period. This underperformance extends beyond the last 12 months, with the stock trailing the BSE500 index in each of the previous three annual periods.
Examining the company’s financial growth over the last five years reveals modest expansion. Net sales have grown at an annual rate of 1.40%, while operating profit has shown a growth rate of 2.15%. These figures suggest limited momentum in top-line and operating profitability growth.
Recent financial results for the half-year ending September 2025 indicate further pressures. Operating cash flow for the year stands at Rs.346.80 crores, the lowest recorded in recent periods. Profit after tax for the latest six months is Rs.14.77 crores, reflecting a contraction of 63.99% compared to prior periods. Return on capital employed (ROCE) for the half-year is at 7.58%, also among the lowest levels observed. Return on equity (ROE) is reported at 5.2%, while the stock trades at a price-to-book value of 3.2 times, which is relatively high compared to its peers’ historical valuations.
Valuation and Peer Comparison
Despite the recent price decline, Bajaj Electricals’ valuation remains elevated relative to its own historical averages and peer group metrics. The stock is trading at a discount compared to some peers but still reflects a premium in terms of price-to-book ratio. This valuation dynamic may be influenced by the company’s low debt-to-equity ratio, averaging 0.05 times, which indicates a conservative capital structure and limited financial leverage.
Institutional investors hold a significant stake in the company, with 23.62% of shares owned by such entities. This level of institutional holding suggests that a considerable portion of the stock is held by investors with access to detailed fundamental analysis.
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Sector and Industry Context
Bajaj Electricals operates within the Electronics & Appliances industry and sector, which has seen mixed performance in recent times. While the broader market indices have maintained positive momentum, the company’s stock has not mirrored this trend. The divergence between Bajaj Electricals and the Sensex highlights the challenges faced by the company in maintaining competitive growth and profitability within its sector.
The stock’s 52-week high was Rs.862, indicating a substantial decline of approximately 44.7% from that peak to the current 52-week low of Rs.476. This wide range underscores the volatility and downward pressure experienced by the stock over the last year.
Summary of Key Financial and Market Indicators
To summarise, Bajaj Electricals’ recent stock performance is characterised by:
- New 52-week low price of Rs.476 reached on 5 December 2025
- Four consecutive days of negative returns totalling -1.47%
- Trading below all major moving averages (5, 20, 50, 100, 200 days)
- One-year total return of -39.19%, underperforming the Sensex’s 4.47%
- Modest net sales and operating profit growth over five years at 1.40% and 2.15% respectively
- Operating cash flow at Rs.346.80 crores, the lowest recent figure
- Profit after tax for the latest six months at Rs.14.77 crores, down by 63.99%
- ROCE at 7.58% and ROE at 5.2%, indicating constrained profitability
- Price-to-book ratio of 3.2 times, reflecting a relatively high valuation
- Low average debt-to-equity ratio of 0.05 times
- Institutional holdings at 23.62%
These factors collectively illustrate the current market and financial position of Bajaj Electricals as it navigates a challenging period marked by subdued growth and valuation pressures.
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