Prabhudas Lilladher Recommends 'Accumulate' for Bajaj Electricals, Sets Target at Rs 449

• Prabhudas Lilladher revises FY27/28 earnings estimate down by 17%/11% due to volume contraction and margin pressure from increased commodity prices.
• Rating downgraded to 'Accumulate' with a target price of Rs 449 (previously Rs 597), valuing the stock at 25x Mar’28 EPS.
• Consumer Products (CP) segment saw a 25.2% YoY decline, while GP margin contracted by 80bps YoY.
• Lighting business shows strong momentum, expanding into switchgear, solar products, and wires.
• Bajaj Electricals implemented a 2-5% price hike from Feb’26 to counter commodity inflation and expects CP EBIT margin recovery through cost efficiency.