Crompton Greaves Consumer Electricals
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Crompton Greaves Consumer Electricals is navigating a complex landscape marked by both growth opportunities and margin pressures. Management's focus on premiumization, particularly in the BLDC fan segment, and strategic investments in manufacturing are expected to drive revenue growth and enhance market share. The company's disciplined capital allocation, including a planned INR 3.5 billion investment in a new facility, supports its long-term growth strategy. Despite facing challenges from commodity price inflation and competitive pressures, Crompton has successfully passed on a significant portion of these costs to consumers, which bodes well for margin stability. Vista's financial outlook reflects stable revenue growth and margins, with an expected upside of approximately 58.6%. The favorable macro environment, characterized by improving manufacturing indicators and consumer spending, further supports Crompton's growth trajectory. Over the next 12-24 months, key opportunities include the expansion into solar and wires markets, while watchpoints include execution risks related to supply chain stability and competitive dynamics in the kitchen appliances sector
Why We Like This Stock
- Strong performance in premium segments, particularly BLDC fans, supports revenue growth
- Strategic investments in manufacturing and expansion into solar and wires markets enhance long-term growth potential
- Effective pricing strategies have allowed the company to mitigate inflationary pressures on margins
Things To Watch Out For
- Commodity price volatility poses ongoing risks to margin stability
- Intense competition in the kitchen appliances and lighting sectors may limit pricing power
- Execution risks related to supply chain stability and integration of new product lines could impact growth
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 7,313 | 7,864 | 8,096 | 8,348 | 9,390 |
| Profit Before Tax (Cr.) | 573 | 756 | 677 | 705 | 835 |
| PBT Margin | 7.8% | 9.6% | 836.2% | 8.4% | 8.9% |
| Net Profit (Cr.) | 439 | 541 | 320 | 528 | 604 |
| Earnings Per Share | 6.8 | 8.3 | 4.8 | 7.9 | 9.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BOB Capital Markets | ▲ Buy | 330 | 14-May-2026 |
| CLSA | ▲ Outperform | 325 | 07-Aug-2026 |
| Citigroup | ▲ Buy | 400 | 07-Aug-2026 |
| Elara Capital | ▲ Buy | 410 | 15-May-2026 |
| Geojit Financials | ► Add | 329 | 25-May-2026 |
| HDFC Securities | ▲ Buy | 335 | 14-May-2026 |
| HSBC | ▲ Buy | 350 | 07-Aug-2026 |
| ICICI Securities | ▲ Buy | 350 | 18-May-2026 |
| Jeffries | ▲ Buy | 330 | 07-Aug-2026 |
| Kotak Securities | ▲ Buy | 375 | 13-Jul-2026 |
| Moneycontrol | ▲ Overweight | nan | 04-Jun-2026 |
| Morgan Stanley | ► Equalweight | 285 | 14-May-2026 |
| Motilal Oswal | ▲ Buy | 340 | 07-Aug-2026 |
| Nomura | ▲ Buy | 335 | 14-May-2026 |
| Prabhudas Liladhar | ▲ Buy | 330 | 10-Aug-2026 |
Company Overview
Show Company Profile
Crompton Greaves Consumer Electricals Limited manufactures and markets consumer electrical products in India. The company operates in two segments, Electrical Consumer Durables and Lighting Products. The company offers fans, such as ceiling, table, wall-mounted, pedestal, ventilating, kitchen tower, exhaust, and industrial fans; and agriculture, industrial, residential, compressor, specialty, and solar pumps. It also provides home appliances, such as air coolers and smart plugs; oil filled, heat convectors, halogen, quartz, and ceramic heaters; personal, tower, window, and desert coolers; storage, instant, immersion rods, and gas water heaters; room heaters; fabric care products; dry and steam irons; and OTG, air fryer, induction cooktop, rice cooker, sandwich maker, pop-up toaster, and electric kettle products. In addition, the company offers lighting products, such as bulbs, battens, ceiling lights, table tamps, outdoor lights, professional lighting products, led lights, and extension boards; and cooking, brewing, mixer and wet grinders, gas stoves, blenders, pressure cookers, cooktop products, and food preparation products; and chimneys, hobs, built-in dishwashers, and build in microwaves and ovens. Crompton Greaves Consumer Electricals Limited was incorporated in 2015 and is based in Mumbai, India.