305.80 -2.95 (-0.96%)
NSENov 26, 2020 03:31 PM
The 20 reports from 8 analysts offering long term price targets for Crompton Greaves Consumer Electricals Ltd. have an average target of 313.29. The consensus estimate represents an upside of 2.45% from the last price of 305.80.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-10-24||Crompton Greaves Con.. +||Nirmal Bang Institutional||304.15||365.00||304.15 (0.54%)||19.36||Buy|
Crompton Greaves Consumer Electricals- 2QFY21 Result Update- Healthy growth, strong margins & robust OCF; Retain Buy
Nirmal Bang Institutional
Crompton Greaves Consumer Electricals Ltd (CGCEL) posted a healthy revenue growth of 11% YoY at Rs12bn, 23%/20% above our/consensus estimate, led by strong volume growth in the Electrical Consumer Durables (ECD) segment and recovery in the B2C LED lighting business. ECD sales grew 18% YoY to Rs9.3bn (78% of total sales), led by 23%/32% value growth in Fans/Appliances. Lighting revenue fell 7% YoY to Rs2.7bn (22% of total sales) as 10% value growth in B2C LED sales was negated by a significant decline in B2G sales. Aggressive cost control initiatives helped in cost savings worth Rs350mn in 2QFY21. Consequently, gross margin grew 100bps YoY and 40bps QoQ to 32.9% while EBITDA margin jumped 350bps YoY to...
|2020-10-23||Crompton Greaves Con.. +||Prabhudas Lilladhar||304.15||346.00||304.15 (0.54%)||13.15||Buy|
Incremental margin expansion to be tepid as advertising, marketing and overheads will gradually perk up We increase our FY21/22/23 earnings by 15.7%/ 3.6%/ 5.3% respectively and reiterate our positive stance on Crompton given 1) strong sales with market share gains in core categories of Fan, Pumps 2) Focus on scaling up large categories like Geysers, Coolers and Mixer Grinders 3) Superior market penetration and on shelf availability due to go to market initiatives and 4)...
|2020-10-23||Crompton Greaves Con.. +||Motilal Oswal||305.20||360.00||305.20 (0.20%)||17.72||Buy|
|2020-10-23||Crompton Greaves Con.. +||Dolat Capital||304.15||370.00||304.15 (0.54%)||20.99||Buy|
|2020-09-11||Crompton Greaves Con.. +||Motilal Oswal||254.30||310.00||254.30 (20.25%)||Target met||Buy|
Thus, we expect value growth in the Lighting segment to follow volume growth while margins should be on an uptrend 2QFY21 onwards (full quarter impact expected to reflect in 3QFY21 only). been under stress for the past two years now owing to price erosion at the industry level. Thus, despite the double-digit volume growth, Lighting revenues have dropped by 5% CAGR over FY18-20. Thus, though the Lighting segment formed 25% of Cromptons turnover in FY20, the segmental PBIT contribution was limited to just 9%. Cromptons ECD segment has been performing well with double-digit growth for eight consecutive quarters prior to the COVID-19 outbreak in Mar20. The margin performance is commendable and is the best in the industry. Since Cromptons categories have higher replacement demand, we see higher probability of steady performance in the coming quarters and in FY22E (v/s negative impact for peers from weak consumer demand).
|2020-07-27||Crompton Greaves Con.. +||Prabhudas Lilladhar||244.10||288.00||244.10 (25.28%)||Target met||Buy|
Crompton Concall re-affirmed our positive stance with resilient underlying demand, steady build-up in activity levels post lockdown (90% levels in June backed by secondary sales data), strong sales trend in Appliances (Geysers and Mixer Grinders) and improving balance sheet (Net cash at Rs4.5bn v/s Rs2.37bn in March20). Although Crompton has implemented an additional cost saving program (in addition to Project Unnati), near term localized lockdowns remain a near term threat to recovery. However, to drive long term...
|2020-07-27||Crompton Greaves Con.. +||Yes Securities||245.05||277.00||245.05 (24.79%)||Target met||Buy|
Crompton's numbers are a beat on all fronts. Revenue outperformancewasledbyfasterrevivalinitsB2Cbusinessin June,whereinitmanagedtorecoverto90%oflastyear'slevel. Secondarysalespickupwassimilartoprimarysalesandoverall...
|2020-07-27||Crompton Greaves Con.. +||Motilal Oswal||251.95||285.00||251.95 (21.37%)||Target met||Buy|
27 July 2020 CROMPTONs top line was 11% below estimates. Earnings were 14% above expectations on account of strong cost controls, led by a cut in ad-spends and the ongoing cost rationalization exercise (Project Unnati). Although a large part of the cost control measures (e.g. ad-spends) may not be recurring, the business model strength of the company is impressive in times of a crisis. Demand activity in Jun20 is back particularly at ~85% for fans and at ~90% for overall ECD segment. Management has indicated that there was no MoM sales decline observed, despite pent-up demand coming in post lockdown. Improvement in working capital cycle helped in further strengthening of the Incorporating 1QFY21 performance, we have increased our FY21E EPS by 12%, while FY22E EPS remains unchanged. Maintain unchanged TP of INR285 (32x FY22E EPS). Revenues declined 47% YoY to INR7.1b (11% below expectation).
|2020-05-19||Crompton Greaves Con.. +||Nirmal Bang Institutional||211.50||265.00||211.50 (44.59%)||Target met||Buy|
Crompton Greaves Consumer Electricals- 4QFY20 Result Update- COVID-19 dents topline; Cost control sustains margins
Nirmal Bang Institutional
Crompton Greaves Consumer Electricals (CGCEL) posted 4QFY20 revenue of Rs10.2bn, down 16% YoY, 8%/10% below our/consensus estimates. CGCEL lost primary sales of Rs3bn in March owing to COVID-19 lockdown; adjusting the same it would have posted 9% YoY growth in 4QFY20. CGCEL's overall B2C volume/value growth in Jan-Feb months was 33%/14 YoY, respectively. Electric Consumer Durables (ECD) sales fell 14% YoY to Rs7.4bn (73% of total sales), but growth in Jan-Feb months was strong, driven by fans, domestic pumps and appliances. Lighting revenue fell 19% YoY to Rs2.8bn (27% of total sales) due to lower LED prices YoY and slowdown in B2B/B2G orders (50% of segment sales). Gross margin rose...
|2020-05-18||Crompton Greaves Con.. +||HDFC Securities||202.15||221.00||202.15 (51.27%)||Target met||Accumulate|
We believe Crompton's business is more essential than discretionary as Fan/Lighting/Pumps are need based. Thereby, revenue loss due to lockdown will be limited than its peers. Owing to continued extension of lockdown and weakness in demand, we cut our EPS estimates 6/3% for FY21/FY22 (22/21% cut in our 4QFY20 Preview). We value Crompton at 30x on Mar-22E EPS, deriving a TP of Rs 221. Maintain ADD. Cromptons performance in 4QFY20 saw a strong start as the co registered 14% yoy growth in its net revenues in Jan/Feb 2020. ECD clocked 18% in Jan/Feb while Lighting was at 4%. Fans, Appliances and domestic pumps registered volume growth of 21%, 48% and 19%. Covid led lockdown impacted the quarter adversely as co missed out on sales during the last 10-15 days of March (~25% of revenue mix for the quarter). However, compared to its peers, Cromptons performance was resilient. Decline of 14% yoy in ECD was in-line with Havells while the decline of 19% yoy in Lighting was better than the 31% yoy decline reported by Havells.
|2020-05-18||Crompton Greaves Con.. +||Dolat Capital||202.15||260.00||202.15 (51.27%)||Target met||Buy|
Primed to recover the fastest despite Q4 miss; upgrade to Buy Q4 numbers were a miss across our and consensus estimates, due to impact of March lockdown on sales, despite a strong Jan and Feb. However, margins were helped by lower costs, especially in ad expenses, which enabled CG Consumer to maintain 13.8% margins. At segmental levels, ECD margins were flat while lightning margins...
|2020-05-18||Crompton Greaves Con.. +||Motilal Oswal||202.15||240.00||202.15 (51.27%)||Target met||Buy|
18 May 2020 CROMPTON was all set to witness one of its strongest quarter (based on Jan- Feb20 sales) before the onset of the COVID-19 led disruption in Mar20, 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-Feb20 (33% YoY across ECD and B2C Lighting). Primary sales have resumed from end-Apr20, and Fans and Pumps have seen good pick-up in the South and East India in May20. 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. We maintain our Revenue declined 16% YoY to INR10.2b (16% below est.). EBITDA declined 18% YoY to INR1.4b (17% below est.) while EBITDA margin was down 40bp YoY to 13.6% (v/s est.
|2020-05-18||Crompton Greaves Con.. +||Prabhudas Lilladhar||211.50||267.00||211.50 (44.59%)||Target met||Buy|
We cut Crompton's FY21/FY22 EPS by 16.7% and 8.4% given Covid-19 led disruption in demand. However, we believe Crompton is better placed than most of its peers given 1) low discretionary nature of products (fans, lighting and pumps.) 2) lesser dependence on seasonal products & 3) limited exposure to B2B segment. With demand uncertain, Crompton has implemented additional cost saving measures (Rs1bn) to rein in costs. However, to drive long term growth Crompton shall continue to invest in...
|2020-05-18||Crompton Greaves Con.. +||Edelweiss||213.00||254.00||213.00 (43.57%)||Target met||Buy|
|2020-05-18||Crompton Greaves Con.. +||Yes Securities||202.15||242.00||202.15 (51.27%)||Target met||Buy|
|2020-01-31||Crompton Greaves Con.. +||Nirmal Bang Institutional||284.45||330.00||284.45 (7.51%)||7.91||Buy|
Crompton Greaves Consumer Electricals - 3QFY20 Result Update- ECD stays healthy, price erosion affects Lighting
Nirmal Bang Institutional
Crompton Greaves Consumer Electricals (Crompton) posted 3QFY20 revenue of Rs10.7bn, up 4% YoY, 5%/4% below our/consensus estimates. Electric Consumer Durables (ECD) sales grew by 11% YoY to Rs7.9bn (74% of total sales), led by strong performance of Fans, Domestic Pumps and Appliances. Lighting revenue fell by 11% YoY to Rs2.8bn (26% of total sales) due to continued price erosion in LED lights while volume grew in double digits. Gross margin rose by 30bps YoY to 32%. EBITDA rose by 9% YoY to Rs1.4bn, leading to an operating margin of 12.8%, up 60bps YoY, above our/consensus estimate of 12.2% each. EBIT margin of the ECD segment was healthy at 19.8%, up 110bps YoY, while Lighting segment EBIT margin was down...
|2020-01-30||Crompton Greaves Con.. +||Edelweiss||288.70||300.00||288.70 (5.92%)||Target met||Buy|
|2020-01-30||Crompton Greaves Con.. +||Motilal Oswal||284.45||305.00||284.45 (7.51%)||Target met||Buy|
30 January 2020 Crompton demonstrated strong show in the ECD segment with market share gains across key categories. Management is optimistic on growth outlook and hasnt witnessed any meaningful slowdown in its core categories. Channel stocking in fans segment for upcoming summer season is key. We maintain our earnings estimates and Buy rating with TP of INR305. Cromptons 3QFY20 revenue grew 4% YoY to INR10.7b (in-line). EBITDA grew 8.6% YoY to INR1.4b and was 4% ahead of est. on the back of favorable mix, cost cutting initiatives and improvement in processes. Due to superior cash flow generation, other income came in at INR174m (v/s est. Adj. PAT grew 30% YoY to INR1.04b (in-line).
|2019-12-04||Crompton Greaves Con.. +||Motilal Oswal||254.00||254.00 (20.39%)||Buy|
For e.g. many companies are offering fans, yet the market concentration is quite high amongst the top 4-5 players. In Air Coolers, the growth rate is ~30%+ with again a clear path to rank among the top-3 players in 3 years. While its market share is quite low in many categories that come under Kitchen Appliances, CROMPTON believes that there is room for growth. The need is for meaningful distinctive offerings, (b) investment in marketing is required, the cost structure needs to be in place to enable the above two parameters without charging unusual premium, and have a GTM strategy to sell the product. Though LEDs have longer replacement cycle, demand is expected to be strong in the near term as new socket growth is quite robust, the replacement socket growth needs to be tapped and there is huge scope for premiumization in LED products compared to traditional lighting includes 3,500+ primary customers and 1,50,000 retail touch points.
|2019-10-25||Crompton Greaves Con.. +||Nirmal Bang||254.75||335.00||254.75 (20.04%)||Buy|
Crompton Greaves Consumer Electricals- 2QFY20 Result Update- ECD segment outperforms, Lighting affects margin
Crompton Greaves Consumer Electricals (CGCEL) posted net revenue of Rs10.7bn in 2QFY20, up 4% YoY, 5%/6% below our/consensus estimates. Electric Consumer Durables (ECD) revenue grew by 11% YoY to Rs7.9bn (73% of total sales), led by healthy growth in Fans, Pumps and Geysers. Lighting revenue fell by 12% YoY to Rs2.9bn (27% of total sales) due to continued price erosion in LED lights. Gross margin rose 330bps YoY to 31.9%, driven by improved sales mix, new product launches and cost optimization programmes. EBITDA rose by 5% YoY to Rs1.3bn, leading to an EBITDA margin of 12%, up 10bps YoY, slightly below our estimate of 12.2%. EBIT margin of the ECD segment was healthy at 19.2%, up 30bps YoY, while Lighting...