Crompton Greaves Consumer Electricals
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Crompton Greaves Consumer Electricals is navigating a pivotal transition under its 'Crompton 2.0' strategy, which emphasizes consumer-centric innovation and premiumization. Management's focus on expanding into new segments such as solar and wires, alongside a commitment to doubling revenue by FY31, positions the company for sustained growth. Recent earnings calls highlight strong performance in the BLDC fan segment and a proactive approach to mitigating cost pressures through strategic price increases. Vista's financial outlook reflects stable revenue growth and margins, supported by a robust balance sheet and disciplined capital allocation. However, the company faces challenges from intense competition and potential supply chain disruptions. The consumer durables industry is expanding, providing a favorable backdrop, but inflationary pressures and market saturation in certain categories remain watchpoints. Over the next 12-24 months, key opportunities include the successful execution of new product launches and market share gains in premium segments, while headwinds may arise from commodity price volatility and execution risks in scaling new businesses
Why We Like This Stock
- Management's 'Crompton 2.0' strategy aims to double revenue by FY31 through premiumization and expansion into new segments
- Strong performance in the BLDC fan segment and proactive pricing strategies are expected to support revenue and margin stability
- A robust balance sheet and disciplined capital allocation provide a solid foundation for future growth initiatives
Things To Watch Out For
- Intense competition in core categories may pressure margins and market share
- Potential supply chain disruptions could impact production and execution of growth strategies
- Inflationary pressures and commodity price volatility pose risks to maintaining profitability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 7,313 | 7,864 | 8,096 | 8,341 | 9,158 |
| Profit Before Tax (Cr.) | 573 | 756 | 677 | 728 | 832 |
| PBT Margin | 7.8% | 9.6% | 8.4% | 8.7% | 9.1% |
| Net Profit (Cr.) | 439 | 541 | 320 | 546 | 603 |
| Earnings Per Share | 6.8 | 8.3 | 4.8 | 8.2 | 9.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Citigroup | ▲ Buy | 400 | 21-Aug-2026 |
| ICICI Securities | ▲ Buy | 315 | 21-Aug-2026 |
| JPMorgan | ▲ Buy | 290 | 21-Aug-2026 |
| Jeffries | ▲ Buy | 330 | 21-Aug-2026 |
| Motilal Oswal | ▲ Buy | 340 | 21-Aug-2026 |
| Nomura | ▲ Buy | 338 | 21-Aug-2026 |
| Prabhudas Liladhar | ▲ Buy | 330 | 21-Aug-2026 |
| Axis Securities | ▲ Buy | 333 | 07-Aug-2026 |
| CLSA | ▲ Outperform | 325 | 07-Aug-2026 |
| HSBC | ▲ Buy | 350 | 07-Aug-2026 |
| Kotak Securities | ▲ Buy | 375 | 13-Jul-2026 |
| Macguire | ▲ Buy | 333 | 13-Jul-2026 |
| Moneycontrol | ▲ Overweight | nan | 04-Jun-2026 |
| Geojit Financials | ► Add | 329 | 25-May-2026 |
| Elara Capital | ▲ Buy | 410 | 15-May-2026 |
| BOB Capital Markets | ▲ Buy | 330 | 14-May-2026 |
| HDFC Securities | ▲ Buy | 335 | 14-May-2026 |
| Morgan Stanley | ► Equalweight | 285 | 14-May-2026 |
Company Overview
Show Company Profile
Crompton Greaves Consumer Electricals Limited manufactures and markets consumer electrical products in India. It 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 monoset, 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 kitchen appliances that include 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. Further, it offers residential solar rooftops ;and wires and cables. Crompton Greaves Consumer Electricals Limited was incorporated in 2015 and is based in Mumbai, India.