Reliance Securities has reiterated 'Buy' on Bajaj Corp with target price of Rs 490 in its report.

Commenting on the investment rationale, the stock broker said, ''FMCG pack remained strong in trade yesterday, with Bajaj Corp in particular clocking a smart gain of ~3% supported by 1.7x its2-week average volume on the exchanges. Despite an over all low sales volume trajectory for our consumer universe, BajajCorp maintained its volume growth momentum for flagship brand Almond Drops (AD) at ~28% yoy for the quarter gone by, albeit on low base. 4QFY15 also marked the launch of Bajaj Amla HairOil (in direct competition of Marico’s Shanti Badam Amla Hair Oil), which recorded revenue of Rs14mn for the quarter.

We like the company for its strong leadership position in the fast grow-ing Light Hair Oils category and believe that the volume growthfor AD will be sustained going forward given the discretionary spending revival (especially in the urban markets). We reiterate our BUY recommendation on Bajaj Corp with a target price of Rs 490.''

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