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

ICICI Securities has a buy call on Crompton Greaves Consumer Electricals with a target price of Rs 440. The current market price of Crompton Greaves Consumer Electricals is Rs 318.7. Incorporated in 2015, Crompton Greaves Consumer Electricals is a Mid Cap company with a market cap of Rs 20371.44 crore, operating in 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 be above cost of capital in FY27E. At our DCF-based target price of Rs 440, 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.

Promoter/FII Holdings
Promoters held $Parser.toNumber($MarketsData-marketResults.newShareHolding.summary.promoters.percentage) per cent stake in the company as of 31-Dec-2024, while FIIs owned 34.41 per cent, DIIs 52.43 per cent.