Buy Crompton Gr. Con; target of Rs 240: Motilal Oswal

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Motilal Oswal 's research report on Crompton Gr. Con

CROMPTON was all set to witness one of its strongest quarter (based on Jan-Feb’20 sales) before the onset of the COVID-19 led disruption in Mar’20, which led the sales decline across categories in 4QFY20. While management is optimistic of supply side getting back to normal as the lockdown gradually eases, it still remains cautious on the demand outlook. - Volume growth was robust during Jan-Feb’20 (33% YoY across ECD and B2C Lighting). Primary sales have resumed from end-Apr’20, and Fans and Pumps have seen good pick-up in the South and East India in May’20. We have cut our FY21E/FY22E earnings estimates by 22%/11% to build in the impact caused by the COVID-19 disruption and modest demand outlook ahead.

Outlook

We maintain our Buy rating with TP of INR240 (prior: INR270).

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More