Stock market analyst Varun Daga is of the view that investors can buy Bajaj Electricals Ltd stock with short term target of Rs 260.

Mr. Daga said that the interested investors can buy the stock with stop loss of Rs 215.

Today, the shares of the company opened at Rs 214.10 on the Bombay Stock Exchange (BSE). The share price has seen a 52-week high of Rs 240 and a low of Rs 70 on BSE.

Current EPS & P/E ratio stood at 12.05 and 18.97 respectively.

Net profit of the company fell 21% to Rs 37.46 crore in spite of robust growth in net sales by 19% to Rs 784.20 crore for the three month period ended March 2010.

The decline in income is mainly because of fall in margins by 60 bps to 11.8%, EO expenditure of Rs 5 crore and higher prior period adjustments of Rs 8.12 crore.

Net sales during the Jan-March quarter grew by 19% to Rs 784.20 crore. The increase in sales is backed by increase in the consumer durable business that surged 36% to Rs 315.07 crore and contributed 40% of total sales.

Bajaj Electricals Limited (BEL) is a seventy year old company. It has six strategic business divisions including Engineering and Projects, Appliances, Fans, Luminaires, Lighting and Morphy Richards.

Bajaj Electricals owns 19 divisions spread across different parts of India besides being backed by around 600 distributors, 3000 authorized dealers, more than 3,00,000 retail outlets and more than 230 customer care centers.