September 24, 2025 — Midday Update
Shares of Bajaj Electricals were among the day’s biggest movers on Wednesday, rallying sharply after the company’s board gave its nod to acquire the Morphy Richards brand rights for India and select South Asian markets. The stock climbed 8–13% intraday, with market participants piling into the counter in record numbers.
Trading activity saw an unprecedented surge, with volumes soaring around 159 times the 30-day average, signaling strong conviction from both retail and institutional investors.
The Deal: From Licensing to Ownership
Bajaj Electricals announced that it will acquire full ownership of the Morphy Richards brand in India and five neighboring South Asian markets for ₹146 crore. The acquisition includes all intellectual property rights, trademarks, and brand ownership — a significant step up from the earlier licensing model under which Bajaj sold Morphy Richards products in India.
This transition from a licensing arrangement to outright ownership gives Bajaj Electricals greater flexibility in shaping the brand’s future in India’s fast-growing premium home appliances market. It also eliminates royalty payments and strengthens its ability to drive innovation, pricing, and distribution under its own strategic framework.
Market Reaction: A Strong Vote of Confidence
The announcement was met with an immediate burst of buying interest. Bajaj Electricals’ shares surged over 13% in early trade before stabilizing around 8–10% higher by midday.
The most striking figure was the explosion in trading volumes. Volumes jumped nearly 159× compared to the 30-day daily average, showing that investors were not only enthusiastic but also willing to take large positions quickly. Such spikes in both price and volumes are often seen as technical breakouts, suggesting potential for more upside if momentum continues.
| Metric | Value |
|---|---|
| Intraday Price Gain | +8% to +13% |
| Deal Value | ₹146 crore |
| Volume Surge | ~159× 30-day average |
| Geographic Coverage | India + 5 South Asian markets |
Why It Matters
The Morphy Richards brand is well known in India for its premium kitchen and home appliances. By bringing it fully under its control, Bajaj Electricals can expand into higher-value product categories while strengthening its competitive edge against multinational peers.
Investors see this as a strategic move that could unlock long-term growth potential. With the premium appliances segment expanding rapidly in urban India, the deal could help Bajaj tap into rising consumer demand for branded, aspirational products.
Risks & Challenges Ahead
Despite the strong market response, analysts caution that execution will be key.
- Integration risk: Shifting from licensing to ownership requires smooth operational transition.
- Execution on ground: Building product pipelines, marketing campaigns, and supply chains will determine success.
- Competitive intensity: The home appliances space is crowded, with strong players like Philips, Havells, and Panasonic.
- Profit-taking pressure: After a sharp rally, short-term investors may look to book gains.
Outlook
The acquisition of Morphy Richards marks a turning point for Bajaj Electricals, giving it full control over a respected brand in India and neighboring markets. The market’s sharp reaction — both in price and volume — reflects confidence that this deal could transform the company’s growth trajectory.
If Bajaj Electricals manages integration effectively and leverages the Morphy Richards name to scale its premium segment, the stock could remain a strong performer in the months ahead. For now, the rally underlines investors’ belief that the company has taken a decisive step toward becoming a bigger force in India’s appliances sector.
