241.25 -1.00 (-0.41%)
NSEJul 16, 2020 15:31
The 23 reports from 9 analysts offering long term price targets for Crompton Greaves Consumer Electricals Ltd. have an average target of 260.50. The consensus estimate represents an upside of 7.98% from the last price of 241.25.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-05-19||Crompton Greaves Con..||Nirmal Bang Institutional||211.50||265.00||211.50 (14.07%)||9.84||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 (19.34%)||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..||Prabhudas Lilladhar||211.50||267.00||211.50 (14.07%)||10.67||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..||Yes Securities||202.15||242.00||202.15 (19.34%)||Target met||Buy|
|2020-05-18||Crompton Greaves Con..||Dolat Capital||202.15||260.00||202.15 (19.34%)||7.77||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..||Edelweiss||213.00||254.00||213.00 (13.26%)||5.28||Buy|
|2020-05-18||Crompton Greaves Con..||Motilal Oswal||202.15||240.00||202.15 (19.34%)||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.
|2020-01-31||Crompton Greaves Con..||Nirmal Bang Institutional||284.45||330.00||284.45 (-15.19%)||36.79||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 (-16.44%)||Target met||Buy|
|2020-01-30||Crompton Greaves Con..||Motilal Oswal||284.45||305.00||284.45 (-15.19%)||26.42||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 (-5.02%)||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..||Edelweiss||248.90||300.00||248.90 (-3.07%)||Target met||Buy|
|2019-10-25||Crompton Greaves Con..||Motilal Oswal||254.75||296.00||254.75 (-5.30%)||Target met||Buy|
Earnings miss estimates marginally: 2QFY20 revenue grew 4% YoY to INR10.7b (10% below est. INR11.9b), while EBITDA was up 4% YoY to INR1.3b (18% below est. INR1.6b). Reported EBITDA margin was marginally up 30bp YoY to 12% (lower than est. 13.2%). PBT came in at INR1.3b, up 9.5% YoY (15% lower than est. INR1.5b). Aided by lower tax rate of 12.3% (v/s 33.4% YoY), adj. PAT stood at INR1.1b (3.5% below est.). 1HFY20 revenue/EBITDA/PAT grew 8%/10%/29% YoY. Lighting segment performance disappoints: Lighting segment revenue...
|2019-10-25||Crompton Greaves Con..||Nirmal Bang||254.75||335.00||254.75 (-5.30%)||38.86||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...
|2019-10-24||Crompton Greaves Con..||Reliance Securities||255.10||300.00||255.10 (-5.43%)||Target met||Buy|
Crompton Greaves Consumer Electricals (Crompton) has reported muted revenue growth of 4% to Rs10.8bn in 2QFY20. Revenue from ECD segment grew by 11% YoY to Rs7.9bn led by strong performance in fans, pumps and Geyser, while revenue from Lighting segment declined by 12% YoY to Rs2.9bn led by price erosion and lower EESL sales (down 60%). EBITDA margin was up 10bps YoY to 12.0% as higher margin in ECD segment was partially offset by lower margin in lighting segment. PAT grew by 44% YoY to Rs1.1bn aided by higher other income and lower tax rate. Further, the Company is in the process of revamping its ECD business, which is expected to be implemented by FY21E. We cut our revenue estimates by 2%/6% for FY20/21 factoring the...
|2019-10-24||Crompton Greaves Con..||Prabhudas Lilladhar||255.10||303.00||255.10 (-5.43%)||25.60||Buy|
We cut Crompton's FY20/FY21 EPS by 4.5%/3.4% given 1) slowdown in Change in Estimates | Target | Reco consumer discretionary spends impacting ECD growth rates and 2) near term profitability pressures in lighting due to ~15% price erosion in LED, delayed...
|2019-07-26||Crompton Greaves Con..||Motilal Oswal||225.30||270.00||225.30 (7.08%)||Target met||Buy|
Earnings miss estimates marginally: 1QFY20 revenue grew 12% YoY to INR13.5b (in line with our est. of INR13.7b), while EBITDA was up 15% YoY to INR1.9b (5% below our est. of INR2b). Reported EBITDA margin improved 30bp YoY to 14.2% (lower than our est. of 14.7%), while other income came in higher than our expectation at INR173m. Thus, adj. PAT at INR1.2b was 6% below our expectation of INR1.3b. Lighting segment performance disappoints: Lighting segment revenue declined 2% YoY to INR2.7b (our est. INR3b; +12% YoY). Revenue was...
|2019-07-26||Crompton Greaves Con..||Nirmal Bang Institutional||225.30||285.00||225.30 (7.08%)||Target met||Buy|
Nirmal Bang Institutional
Crompton Greaves Consumer Electricals (CGCEL) posted net revenue of Rs13.5bn in 1QFY20, up 12% YoY, largely driven by volume growth. The topline was in line with our estimate. Electric Consumer Durables (ECD) revenue grew by 16% YoY to Rs10.7bn (80% of total sales), led by strong performance in Fans, Pumps and Coolers owing to product innovations and peak summer season sales. Lighting segment's revenue fell by 2% YoY to Rs2.7bn (20% of total sales) due to price erosion in LED Lighting and volume decline in Conventional Lighting. Gross margin rose by 20bps YoY to 32.6% while EBITDA margin increased by 30bps YoY to 14.2%, leading to a 15% YoY rise in EBITDA to Rs1.9bn. Margin was healthy despite higher ad-spend...
|2019-07-25||Crompton Greaves Con..||HDFC Securities||225.25||304.00||225.25 (7.10%)||26.01||Buy|
Crompton's performance has witnessed volatility (vs. Havells) over the last 4-6 qtrs resulting in stock underperformance. Both segments (ECD and lighting) need to fire together for the stock to re-rate. Market share gains in fans, success in appliances, GTM benefits, cost savings program and acceleration in B-B lighting will be the key drivers. We expect sequential recovery in lighting margins hereon (stable GM and moderate increase in marketing spend). We model 20% EBITDA growth over the rest of FY20 (also driven by a favorable base of 4%) Cromptons 1Q performance was a mixed bag with beat in ECD while miss on lighting. Cos success in ECD with market share gains in fans and higher aggression in appliances was encouraging. Lighting disappoints with legacy issues (conventional lighting) and investments in B2B. We cut EPS by 2-3% over FY20-21E. We value co at 35x on Jun-21 EPS, arriving at a TP of Rs 304.
|2019-07-25||Crompton Greaves Con..||Edelweiss||229.95||300.00||229.95 (4.91%)||Target met||Buy|