Buy Crompton Greaves Consumer Electricals, target price Rs 435: JM Financial

JM Financial has buy call on Crompton Greaves Consumer Electricals with a target price of Rs 435. The current market price of Crompton Greaves Consumer Electricals is Rs 291.9.

Crompton Greaves Consumer Electricals, incorporated in the year 2015, is a Mid Cap company (having a market cap of Rs 18567.86 Crore) operating in Consumer Durables sector.

Crompton Greaves Consumer Electricals key Products/Revenue Segments include Electrical Consumer Durables, Lighting Products, Scrap, Sale of services and Export Incentives for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 1537.51 Crore, down -10.50 % from last quarter Total Income of Rs 1717.80 Crore and up 7.92 % from last year same quarter Total Income of Rs 1424.63 Crore. Company has reported net profit after tax of Rs 88.19 Crore in latest quarter.

The company’s top management includes Mr.H M Nerurkar, Mr.Shantanu Khosla, Mr.Mathew Job, Mr.Promeet Ghosh, Mr.D Sundaram, Mr.P M Murty, Ms.Smita Anand, Mr.P R Ramesh, Mr.Hiroo Mirchandani. Company has MSKA & Associates as its auditors. As on 31-12-2022, the company has a total of 64 Crore shares outstanding.

Investment Rationale
The merger is positive for Crompton shareholders as it can best realise the synergy benefits, and offers a better valuation multiple for Butterfly profits.

Promoter/FII Holdings
Promoters held 2.54 per cent stake in the company as of 31-Dec-2022, while FIIs owned 39.54 per cent, DIIs 44.5 per cent.