An FMCG tag to a stock is likely to propel it to strong gains in the current market scenario. Besides this, Bajaj Corp, dominant in hair oils, had a few other factors buttressing its rollicking run on the bourses.

Bajaj has the lion’s share of the highly lucrative light hair oil segment with its marquee Bajaj Almond Drops Hair Oil. The company has steadily expanded this share to about 54 per cent now. Over 90 per cent of revenues are from Bajaj Almond Drops.

Though it has a narrow product portfolio of hair oils alone, it did manage to expand product line with the successful launch of Kailash Parbat, a cooling oil. The brand has garnered a market share of around two per cent.

Volume growth across brands held above 20 per cent for several quarters. An increasing rural presence has also boded well for revenue growth, since it represents a far larger market. Bajaj has found success in pushing small-size, low-value packs. Approximately 36 per cent of revenues are now from the rural segment, up from the 30 per cent three years earlier.

Raw material pressures let up in the June 2012 quarter, with lower prices of key input liquid light paraffin. Economies on adspend and promotion helped a three percentage point increase in operating margins to 28 per cent.

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