Bajaj Consumer Care shares jump 20% intra-day; Macquarie rates outperform, price target at Rs 592 per share

Bajaj Consumer Care ltd or Bajajcon shares hit the 20 percent upper circuit in intra-day trade at Rs 234.65 per share on the Bombay Stock Exchange (BSE).

The stock rallied after global brokerage Macquarie rated the Bajaj Group firm 'outperform' at a target price of Rs 592 per share. Macquarie says the majority of the promoter's pledge will come down after the stake sale.

Bajaj Resources ltd, the promoter of the Bajajcon, sold nearly 3.23 crore shares or about 22 percent stake at Rs 194.56 apiece for Rs 629 crore in a block deal on Wednesday, according to an exchange filing.

At the end of September quarter, Bajaj Resources held 59.9 percent stake in Bajaj Consumer Care. In March earlier this year, the company's promoters had sold 6.85 percent stake for about Rs 320 crore through an open market transaction.

Bajaj Consumer Care's consolidated net profit rose 11.2 percent year-on-year (yoy) to Rs 56.03 crore, and revenue rose 3.2 percent yoy to Rs 214.22 crore in Q2FY20.

At 11.24 am, Bajaj Consumer Care shares quoted at Rs 232.25, up almost 19 percent on BSE. The benchmark BSE Sensex traded 93 points higher at 38,599.