Buy Crompton Greaves Consumer Electricals, target price Rs 440: ICICI Securities

ICICI Securities has maintained a buy call on Crompton Greaves Consumer Electricals with a revised target price of Rs 440 (Rs 508 earlier). The current market price of Crompton Greaves Consumer Electricals is Rs 331.6. Crompton Greaves Consumer Electricals, incorporated in 2015, is a Mid Cap company with a market cap of Rs 21333.84 crore, operating in the Consumer Durables sector.

Crompton Greaves Consumer Electricals' key products/revenue segments include Electrical Consumer Durables, Lighting Products, Scrap, Sale of services, Export Incentives and Royalty Income for the year ending 31-Mar-2024.

Financials

For the quarter ended 31-12-2024, the company has reported a Consolidated Total Income of Rs 1780.81 crore, down -6.94 % from last quarter Total Income of Rs 1913.53 crore and up 4.18% from last year same quarter Total Income of Rs 1709.36 crore. The company has reported net profit after tax of Rs 111.92 crore in the latest quarter.

The company's top management includes Mr.D Sundaram, Mr.Shantanu Khosla, Mr.Promeet Ghosh, Mr.P M Murty, Ms.Smita Anand, Mr.P R Ramesh, Ms.Hiroo Mirchandani, Mr.Anil Chaudhry, Mr.Sanjiv Kakkar. Company has MSKA & Associates as its auditors. As on 31-12-2024, the company has a total of 64 Crore shares outstanding.

Investment Rationale
ICICI Securities models Crompton to report revenue/PAT CAGRs of 10.3%/19.4% over FY24?27E and RoE of 20% in FY27. At the DCF-based revised target price of Rs 440 (earlier Rs 508), implied target P/E works out to 38x FY27E EPS. The brokerage maintains a BUY rating. Key risks are steep increase in competitive pressures; and input prices.