Buy Crompton Greaves Consumer Electricals, target price Rs 465: Centrum Broking

Centrum Broking has buy call on Crompton Greaves Consumer Electricals with a target price of Rs 465. The current market price of Crompton Greaves Consumer Electricals is Rs 418.35. Time period given by analyst is one year when Crompton Greaves Consumer Electricals Ltd. price can reach defined target.

Crompton Greaves Consumer Electricals Ltd., incorporated in the year 2015, is a Mid Cap company (having a market cap of Rs 26524.36 Crore) operating in Consumer Durables sector.

Crompton Greaves Consumer Electricals Ltd. 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 30-06-2022, the company reported a Consolidated Total Income of Rs 1873.35 Crore, up 19.32 % from last quarter Total Income of Rs 1570.07 Crore and up 75.07 % from last year same quarter Total Income of Rs 1070.08 Crore. Company reported net profit after tax of Rs 125.95 Crore in latest quarter.

Investment Rationale
Butterfly acquisition synergies like (1) foray in the Kitchen appliances space, which has strong gross margin and high long term growth potential, (2) ‘Butterfly’ is a well renowned brand (establishing a totally new brand is extremely difficult), (3) BGAL is a sound financial franchise (hence no need to turn around the company), and (4) Better growth prospects for CROMPTON.

Promoter/FII Holdings
Promoters held 5.94 per cent stake in the company as of 30-Jun-2022, while FIIs owned 48.16 per cent, DIIs 34.09 per cent.