Bajaj Corp - Marks a new beginning beyond hair oils - Kotak

Bajaj Corp has acquired NOMARKS, an anti-marks skin care brand from Ozone Ayurvedics for an undisclosed sum. While the brand is small at Rs. 370 mn, we believe it has high untapped potential given underinvestment by erstwhile promoters. Assuming all-cash deal at 3X sales, we believe the deal is marginally dilutive in first year. However, strong growth potential and de-risking of portfolio are the key plus of this deal (not modeled in our numbers yet). Retain BUY.

Source : Equity Bulls

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