Stock Price Movement and Market Context
On 21 Nov 2025, Bajaj Electricals recorded its lowest price in the past year at Rs.485.5. This level represents a substantial drop from its 52-week high of Rs.862, indicating a decline of approximately 43.6% over the period. The stock underperformed its sector by 1% on the day, continuing a trend of subdued price action relative to peers.
In comparison, the Sensex opened lower by 285.28 points and was trading at 85,251.20, down 0.45% on the day. Despite this, the Sensex remains close to its 52-week high of 85,801.70, just 0.65% away, and is supported by bullish moving averages with the 50-day moving average positioned above the 200-day moving average. Bajaj Electricals, however, is trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day, signalling a weaker momentum relative to the broader market.
Financial Performance Over the Past Year
Over the last twelve months, Bajaj Electricals has delivered a return of -35.40%, contrasting with the Sensex's positive return of 10.49%. This divergence highlights the stock's consistent underperformance against the benchmark index. The company’s net sales have shown a modest annual growth rate of 1.40% over the past five years, while operating profit has moved at a rate of 2.15% annually during the same period, reflecting limited expansion in core earnings.
Profit after tax (PAT) for the nine months ended September 2025 stood at Rs.56.11 crores, representing a decline of 20.21% compared to the previous period. Operating cash flow for the fiscal year was recorded at Rs.346.80 crores, the lowest level observed in recent years. Additionally, the return on capital employed (ROCE) for the half year was 7.58%, marking a low point in the company’s efficiency in generating returns from its capital base.
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Valuation and Profitability Metrics
Bajaj Electricals’ return on equity (ROE) is reported at 5.2%, which, when considered alongside a price-to-book value of 3.3, suggests a valuation that is relatively expensive compared to its profitability. Despite this, the stock is trading at a valuation level that aligns fairly with the historical averages of its peer group within the Electronics & Appliances sector.
Profitability has shown pressure, with profits falling by 16.9% over the past year. This contraction in earnings, coupled with the subdued growth in sales and operating profit, has contributed to the stock’s downward price movement and its current position near the 52-week low.
Comparative Performance and Market Position
Over the last three years, Bajaj Electricals has consistently underperformed the BSE500 index, reflecting challenges in maintaining competitive growth and returns. The stock’s cumulative return of -35.40% in the last year further emphasises this trend of relative weakness.
Despite these headwinds, the company maintains a low average debt-to-equity ratio of 0.05 times, indicating a conservative capital structure with limited leverage. Institutional investors hold a significant stake of 23.62%, suggesting that a portion of the shareholder base has access to detailed fundamental analysis and resources.
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Sectoral and Broader Market Dynamics
The Electronics & Appliances sector has experienced mixed performance, with some stocks maintaining momentum while others, including Bajaj Electricals, have faced downward pressure. The stock’s underperformance relative to its sector and the broader market highlights the challenges faced in sustaining growth and profitability in a competitive environment.
While the Sensex remains supported by positive technical indicators and proximity to its 52-week high, Bajaj Electricals’ position below all major moving averages signals a cautious stance from market participants. This divergence underscores the stock’s current difficulties in regaining upward momentum.
Summary of Key Financial Indicators
To summarise, Bajaj Electricals’ recent financial and market data reveal:
- New 52-week low price of Rs.485.5, down from Rs.862 high
- One-year stock return of -35.40%, contrasting with Sensex’s 10.49%
- Net sales growth at an annual rate of 1.40% over five years
- Operating profit growth at 2.15% annually over five years
- PAT for nine months at Rs.56.11 crores, down 20.21%
- Operating cash flow at Rs.346.80 crores, lowest in recent years
- ROCE at 7.58% for the half year, marking a low point
- ROE of 5.2% with a price-to-book value of 3.3
- Low average debt-to-equity ratio of 0.05 times
- Institutional holdings at 23.62%
These figures collectively illustrate the factors influencing Bajaj Electricals’ current market valuation and stock price performance.
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