Is Bajaj Consumer Care a Good FMCG Stock to Buy for the Long Term?

Synopsis:- Brokerage maintains a ‘Buy’ with Rs 600 target, implying 31% upside from Rs 457, backed by strong volume growth and margin expansion. Market share remains below 10% in a $2 billion category, while Aarohan-driven distribution and a Rs 500 crore diversification plan support long-term growth visibility.

India’s personal care sector has emerged as one of the fastest‑growing consumer segments, with the beauty and personal care market estimated at around USD 31–33 billion in FY26 and projected to touch roughly USD 39–40 billion by FY30, expanding at a mid‑single‑digit compound annual growth rate. Rising incomes, digital penetration, and heightened focus on hygiene and wellness continue to drive demand across urban and tier‑2/3 cities, with online channels growing nearly 2x since 2020.

With a market capitalisation of Rs 5,993.27 crore, the shares of Bajaj Consumer Care Ltd were trading at Rs 457.05 per share, decreasing around 4 percent as compared to the previous closing price of Rs 474.30 apiece.

Brokerage Recommendation

As per ICICI Securities Limited, the stock has received a ‘Buy’ rating with a target price of Rs 600, implying a potential upside of 31.2% from Rs 457. This reflects confidence in growth prospects, supported by improving fundamentals, margin visibility, and expected earnings traction in the coming periods.

As per the brokerage, the company delivered strong revenue growth with Q4FY26 net revenue rising 30.4% YoY to Rs 3.3 billion, driven by ADHO volume expansion and market share gains. Moreover, organised trade contributed meaningfully to growth in the twenties, while improving traction in LUPs and rural recovery supported overall momentum.

Additionally, margin performance remained robust as gross margin expanded sharply by 899 bps to 63.7%, supported by a favourable product mix. EBITDA surged nearly 140% YoY to Rs 765 million, with margins at 23.4%. Despite higher brand investments, strong operating leverage drove PAT growth of 105%, reflecting improved efficiency.

Looking ahead, the Aarohan rollout is nearing completion, shifting focus toward productivity and throughput improvements. The programme has already delivered around 4% higher growth in key markets. Management remains optimistic about sustaining ADHO growth, improving GT productivity, and maintaining margins, although global uncertainties may influence future performance.

Management Comment

Management remains confident about the category outlook, strongly rejecting the notion of it being a “sunset sector.” It highlighted a $2 billion-plus market with over 92% penetration and 20%+ margins, growing at high single digits. Additionally, with market share below 10%, the company sees significant headroom to expand within the segment.

Moreover, the company continues to focus on strengthening ADHO through higher brand investments and digital push, alongside improving route-to-market execution via Aarohan. At the same time, diversification remains a priority, targeting Rs 500 crore from the growth portfolio. Inflation challenges are being managed through pricing actions, inventory control, and cost optimization to sustain margins.

Bajaj Consumer Care Ltd is a leading FMCG player known for its flagship hair oil brand Almond Drops. The company focuses on personal care products, leveraging strong brand recall and distribution. It continues to expand its portfolio while strengthening market presence through innovation, marketing, and rural and urban reach.

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