Stock Snapshot
Price Performance
Recommendation Rationale
Favorable growth outlook supported by strategic market expansion and strong demand recovery.
Basis of our Recommendation
Crompton Greaves Consumer Electricals Ltd. is strategically expanding its market presence through new product launches and entry into renewable energy segments, particularly solar. The company is experiencing strong demand recovery, particularly in its non-discretionary product lines, supported by effective pricing strategies. However, it faces challenges from raw material cost inflation and execution risks related to recent acquisitions, which could impact margins. Overall, the outlook remains positive with a focus on innovation and operational excellence.
Why We Like This Stock
- Strong demand recovery in non-discretionary products and premium segments
- Successful entry into solar rooftops and wires markets with promising initial results
- Effective pricing strategies to mitigate rising input costs
Things To Watch Out For
- Persistent raw material cost inflation impacting margins
- Execution risks related to the integration of the Butterfly business
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 7,313 | 7,864 | 8,096 | 9,059 | 10,159 |
| Profit Before Tax (Cr.) | 573 | 756 | 677 | 783 | 926 |
| PBT Margin | 7.8% | 9.6% | 8.4% | 8.6% | 9.1% |
| Net Profit (Cr.) | 439 | 541 | 320 | 567 | 671 |
| EPS | 6.8 | 8.3 | 4.8 | 8.8 | 10.4 |
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.