Multibagger Bajaj stock climbs 5% after firm wins Rs 565 cr contract

Shares of Bajaj Electricals rallied nearly 5% to Rs 1,155.6 in Monday's trade on BSE after the company was awarded the contracts worth Rs 565 crore for the supply of goods and services by South Bihar Power Distribution Company (SBPDCL).

“Bajaj Electricals on Saturday said that its EPC division has bagged a contract worth Rs 564.87 crore from SBPDCL. The contract is for the supply of goods and services by SBPDCL, a domestic entity, under the Revamped Distribution Sector Scheme (RDSS),” the company said in a BSE filing.

“The work includes the supply of plant and installation services for the development of distribution infrastructure of electric supply circle Sasaram and Munger of Bihar,” it added.

At 11.48 am, the scrip was trading 2% higher at Rs 1,125 over its previous day's closing price of Rs 1,103 apiece. On a year-to-date basis, the stock has fallen over 6%, while it has dropped over 8% in the last six months.

Meanwhile, its shares have yielded a multibagger return to its investors as the stock has rallied 176% in the last three years.

As per Trendlyne data, the highest target price for the stock goes up to Rs 1,585, while the average target price estimate is Rs 1,301.5, which shows an upside potential of 16% from the current market prices.

The consensus recommendation from 17 analysts for the stock is a hold. Out of the 17 analysts covering the stock, ten have strong buy and buy ratings, while two have sell ratings, and the other five have hold ratings.

Technically, Bajaj Electricals is trading below five out of eight SMAs. The stock traded lower than 20-day, 30-day, 50-day, 100-day and 150-day moving averages but higher than 5-day, 10-day and 200-day moving averages.

Bajaj Electricals is a part of the country's leading business house Bajaj Group. It has a market cap of Rs 12,941 crore.

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