Butterfly Gandhimathi Appliances
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Butterfly Gandhimathi Appliances is currently in a transition phase, with management emphasizing the importance of internal controls and synergies with its Holding Company. This conservative approach reflects concerns over external macroeconomic factors, including feedstock price volatility and regulatory changes, which could impact revenue growth. Despite these challenges, Vista's financial outlook anticipates stable profit margins, supported by the company's strategic focus on governance and operational efficiency. However, revenue is expected to contract, influenced by intense competition and potential supply chain disruptions. The consumer durables industry is expanding, driven by strong demand for innovative products and e-commerce growth, yet pricing pressures remain a significant headwind. Over the next 12-24 months, key opportunities include leveraging e-commerce channels and enhancing product offerings, while watchpoints include managing operational risks and adapting to shifting consumer preferences. Overall, Vista's forecast reflects cautious optimism, with an expected upside of approximately 11.5% and a target price of ₹696.30, aligning with the company's fair valuation amidst a mixed macroeconomic backdrop
Why We Like This Stock
- Strong consumer demand for innovative products and e-commerce expansion
- Management's focus on internal controls and corporate governance enhances operational resilience
- Stable profit margins expected despite revenue contraction
Things To Watch Out For
- Revenue is projected to decline due to intense competition and potential supply chain disruptions
- External macroeconomic factors, such as feedstock price volatility, pose risks to profitability
- Cautious investor sentiment may limit stock performance in the near term
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 931 | 865 | 943 | 985 | 1,006 |
| Profit Before Tax (Cr.) | 7 | 42 | 58 | 61 | 62 |
| PBT Margin | 0.8% | 4.8% | 6.2% | 6.2% | 6.2% |
| Net Profit (Cr.) | 2 | 28 | 40 | 43 | 44 |
| Earnings Per Share | 1.3 | 15.5 | 22.7 | 24.2 | 24.7 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Butterfly Gandhimathi Appliances Limited manufactures and sells kitchen and small domestic appliances in India and internationally. It offers kitchen appliances, including liquefied petroleum gas stoves, mixer and wet grinders, electric rice and pressure cookers, chimneys, and power and built in hobs; and breakfast appliances, such as hand blenders and mixers, pop up toasters, sandwich makers, juicer mixer grinders, vacuum flasks, vegetable choppers, and water bottles. The company also provides electrical appliances comprising iron boxes, air coolers, washers, tower fans, electric kettles, and egg boilers; and non-stick cookwares and stainless steel utensils under the Butterfly brand name. In addition, it offers after-sales support services. The company was formerly known as Gandhimathi Appliances Limited and changed its name to Butterfly Gandhimathi Appliances Limited in December 2011. Butterfly Gandhimathi Appliances Limited was incorporated in 1986 and is based in Navallur, India. The company operates as a subsidiary of Crompton Greaves Consumer Electricals Limited.