Crompton Greaves Consumer Electricals, incorporated in the year 2015, is a Mid Cap company (having a market cap of Rs 20043.12 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
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 31-12-2022, the company has a total of 64 Crore shares outstanding.
Investment Rationale
On account of slow consumer demand, weak Q3, step-up investments and gradual replenishment of rated fans, we cut our EPS estimate by 20/16/13%. The brokerage's revised numbers capture 10% revenue CAGR with an EBITDA margin of ~13.5% in FY24/FY25. Crompton is among the top-3 companies in the consumer durable space (~INR 70bn revenue, >8bn EBITDA) with best in class operating profile. HDFC Securities' believe the current valuation at 25x P/E on FY25 EPS will re-rate once the earnings normalise. Various steps have already been initiated to fix the gap in the portfolio and marketing front.
Promoter/FII Holdings
Promoters held 2.54 per cent stake in the company as of 31-Dec-2022, while FIIs owned 39.54 per cent, DIIs 44.5 per cent.
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