ICICIdirect recommended Buy on Bajaj Electricals with target price of Rs 416 against current market price of Rs 277 in its report.

Commenting on the investment rationale, the stock broker said, 'Bajaj Electrical's (BEL) engineering & project (E&P) division has bagged eight new orders of Rs 5.18 billion under the Rajiv Gandhi Grameen Vidyutikaran Yojna (RGGVY) from Madhya Pradesh. These orders will be executed in the next 24 months. The current order book size stands at Rs 33.59 billion. The E&P segment witnessed 13% YoY revenue growth during Q1FY15 as the company has largely focused on maintaining the margin.

With an expected turnaround in the E&P business from FY15E onwards and continued dominance in the lighting & CD business, we expect BEL to generate EBITDA of Rs 3.15 billion in FY15E and Rs 430 billion in FY16E.'

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