Multibagger: Bajaj Electricals gained over 350% in 4 years; should you buy? HDFC Securities advises this

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Bajaj Electricals, a part of the Bajaj Group, saw its shares climb steadily over the last four years, climbing from ₹229 to the current level of ₹1,050, marking a substantial gain of 358%.Over the last eight years, the stock has delivered even stronger returns to investors, with an increase of 430%. Looking ahead, HDFC Securities, a domestic brokerage firm, anticipates that the company is well-positioned to capitalise on anticipated improvements in demand, suggesting the continuation of the stock's upward trend.The company holds a prominent position in India’s fast-moving electrical goods (FMEG) segment, boasting a legacy spanning over eight decades.

Its diverse product portfolio includes consumer products such as appliances, fans, and non-electric kitchen aids, as well as lighting solutions encompassing consumer and professional lighting. During FY24, it strategically demerged its EPC division (Power Transmission and Power Distribution), transforming it into a pure-play FMEG company.Also Read: Bajaj Auto shares gain for 12th straight day, surge past ₹10,000 milestoneAccording to the brokerage, the company stands to benefit from growth opportunities in the FMEG sector and expected rural recovery, driven by several factors: its leadership in critical categories within home and kitchen appliances, a well-established distribution network, and significantly higher rural market penetration compared to peers (approximately twice that of its competitors).Having achieved a net cash position for the first time in four decades and simplified its corporate structure in Phase 1 of its transformation journey, the company now focuses on industry-leading growth in its next phase.