Buy Crompton Greaves Consumer Electricals, target price Rs 495: ICICI Securities

ICICI Securities has buy call on Crompton Greaves Consumer Electricals with a target price of Rs 495. The current market price of Crompton Greaves Consumer Electricals Ltd. is Rs 375.5. Crompton Greaves Consumer Electricals Ltd., incorporated in the year 2015, is a Mid Cap company (having a market cap of Rs 23954.93 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
The brokerage models Crompton to report PAT CAGR of 19.7% over FY22-FY24E and RoE of 26.9% in FY24E. It remains positive on the company’s business model due to its competitive advantages and growth opportunities. It maintains BUY on the stock with revised DCF-based TP of Rs495 (implied P/E of 38x FY24E EPS).

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.