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    Buy Crompton Greaves Consumer Electricals, target price Rs 400: HDFC Securities

    Synopsis

    Crompton Greaves Consumer Electricals, incorporated in the year 2015, is a Mid Cap company (having a market cap of Rs 16815.56 Crore) operating in Consumer Durables sector.

    ​Crompton Greaves ConsumerETMarkets.com
    Promoters held 2.54 per cent stake in the company as of 31-Mar-2023, while FIIs owned 39.64 per cent, DIIs 44.16 per cent.
    HDFC Securities has buy call on Crompton Greaves Consumer Electricals with a target price of Rs 400. The current market price of Crompton Greaves Consumer Electricals is Rs 264.

    Crompton Greaves Consumer Electricals, incorporated in the year 2015, is a Mid Cap company (having a market cap of Rs 16815.56 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 31-03-2023, the company has reported a Consolidated Total Income of Rs 1807.73 Crore, up 17.58 % from last quarter Total Income of Rs 1537.51 Crore and up 15.14 % from last year same quarter Total Income of Rs 1570.07 Crore. Company has reported net profit after tax of Rs 131.55 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 31-03-2023, the company has a total of 64 Crore shares outstanding.

    Investment Rationale
    The company is focusing on fixing white spaces by taking various corrective steps like (1) higher brand investments; (2) innovation and R&D; (3) expanding GTM reach; (4) new brand architecture in pumps; and (5) dedicated sales team in lighting.

    Current valuation is low (ECD business is valued at more than INR 140bn for EBIT of INR 8bn in FY23 vs. Havells’ implied ECD value of INR 200bn for EBIT of INR 4bn). If Crompton sustains a healthy trend for the ECD business, the valuation gap will narrow.

    Promoter/FII Holdings
    Promoters held 2.54 per cent stake in the company as of 31-Mar-2023, while FIIs owned 39.64 per cent, DIIs 44.16 per cent.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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