Buy Crompton Greaves, target price Rs 530: Motilal Oswal

Motilal Oswal has buy call on Crompton Greaves with a target price of Rs 530. The current market price of Crompton Greaves Consumer Electricals is Rs 472.25. Time period given by analyst is one year when Crompton Greaves Consumer Electricals 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 29667.38 Crore) operating in Consumer Durables sector.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 1070.08 Crore, down -30.63 % from last quarter Total Income of Rs 1542.65 Crore and up 44.86 % from last year same quarter Total Income of Rs 738.68 Crore. Company reported net profit after tax of Rs 94.76 Crore in latest quarter.


Investment Rationale
CROMPTON has consolidated its position in Fans and Pumps, and is close to being the second leading player in the Water Heaters segment (from fifth or sixth a couple of years ago). With its strong distribution network, the brokerage expects CROMPTON to capitalize on the ongoing demand recovery post the lifting of lockdown restrictions.

Promoter/FII Holdings
Promoters held 6 per cent stake in the company as of June 30, 2021, while FIIs held 40.1 per cent, DIIs 43.7 per cent and public and others 10.2 per cent.