52 Week High stocks : Bajaj Electricals a turnaround story that continues to impress
Turnaround stories are kind of bets that beat markets (Sensex) easily, at least in the initial period when the turnaround story is discovered by the investing public. Bajaj Electricals is one of the few turnaround stories of CY20-21 that is turning out to be a multibagger for investors who showed faith in the company.
Bajaj Electricals is engaged in the consumer products engineering and procurement and construction business. Its 60 per cent revenue comes from Electrical goods sale and the remaining revenue comes from power distribution and transmission.
One of the strong reasons why Bajaj Electricals is doing well is the scaling up of its consumer margins. Investors are also hoping to see a turnaround in the EPC business segment which is creating demand for the stocks. The recently achieved turnaround in its Consumer Products segment with healthy revenue growth and impressive EBIT margins has enthused investors and created confidence of turnaround in the EPC segment as well.
The EPC segment is expected to turnaround in FY22 with its project in Uttar Pradesh nearing completion. The company's strategy to focus on driving growth in Consumer Products business and improving cash flows while reducing the debt levels is paying dividends.
The stock is up by 235 per cent in one year's time while the stock has nearly doubled on YTD basis.
Trading at Rs 1138 per share with a P/E of 97.82 the stock is close to its life high.