415.15 -6.05 (-1.44%)
988.8K NSE+BSE Volume
NSEJun 21, 2021 03:31 PM
The 16 reports from 8 analysts offering long term price targets for Crompton Greaves Consumer Electricals Ltd. have an average target of 411.43. The consensus estimate represents a downside of -0.90% from the last price of 415.15.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2021-05-25||Crompton Greaves Con.. +||ICICI Securities Limited||402.95||480.00||402.95 (3.03%)||15.62||Buy|
ICICI Securities Limited
Crompton Greaves Consumer Electrical (CGCEL) continued its growth momentum in Q4FY21 with topline, PAT growth of ~48%, ~144%, YoY, respectively, much ahead of our expectations. The company gained 1% market share in the fan segment during FY21 and retained No. 1 slot in the segment with overall market share of 27%. However, in the near term, CGCEL will witness demand challenges and EBITDA margin pressure due to lockdown, lower operating leverage and sharp rise in raw material prices. Hence, we marginally cut our revenue, earnings estimate by 5%, 4%,...
|2021-05-24||Crompton Greaves Con.. +||Edelweiss||398.25||481.00||398.25 (4.24%)||15.86||Buy|
|2021-05-24||Crompton Greaves Con.. +||Motilal Oswal||402.95||460.00||402.95 (3.03%)||10.80||Buy|
CROMPTON's topline came in ~6% higher than our estimate. The beat was driven by higher revenue growth in the ECD segment, with growth across Fans, Pumps, and Appliances. Margin in the Lighting segment continued to revive and stood at double-digits for the third consecutive quarter, with sequential expansion owing to sustained volume and value growth, coupled with cost rationalization. While the management does not expect the current margin in Lighting (~15% in 4QFY21) to sustain, a lower double-digit margin is achievable. It gained market share in Fans and continued its...
|2021-02-25||Crompton Greaves Con.. +||HDFC Securities||385.15||385.15 (7.79%)||Buy|
Near-term outlook: Pent-up demand (most seasonal categories missed out massively in the last season), work-from-home (to support convenience driven categories), improving housing activities and resumption of Capex will sustain strong revenue traction in the coming quarters too. Leading companies are expected to pass on raw material inflation while restoring operational cost will be compensated by oplev. Thereby, EBITDA margin will remain healthy in the coming quarters albeit margin expansion is expected to be slower than the past two quarters. Earnings potential will sustain the rich valuation and seasonal channel filling will be the key monitorable for stock performance. In continuation to our take in our Appliance Thematic (Looking Beyond Near-term Disruption), wherein we talked about faster recovery of B-C categories, share gain by leading players, and multi-year growth opportunity drivers, our HSIE CD index clocked robust 11/26% revenue/EBIT growth in the past two quarters. We maintain our view that Appliance companies would grow through multiple drivers like penetration, housing demand, industrial Capex, convenience, and cheap finance. Leading players are present mainly in the urban markets with incremental distribution expansion around semi-urban and rural markets. A large untapped market is available to leading companies, which provides headroom for growth in the coming years. RAC, Kitchen Appliances, Ref and W/M will be driven by consumers convenience, rising electrification, aspirational demand, and expansion of distribution.
|2021-01-26||Crompton Greaves Con.. +||ICICI Securities Limited||428.05||480.00||428.05 (-3.01%)||15.62||Buy|
ICICI Securities Limited
CGCEL's revenue, earnings are likely to grow at CAGR of 13.5%, 15%, respectively, in FY20-23E supported by elevated margins and saving in interest outgo. We maintain our BUY rating on the stock with a revised target...
|2021-01-25||Crompton Greaves Con.. +||Prabhudas Lilladhar||428.05||447.00||428.05 (-3.01%)||7.67||Buy|
5-8% price increase across portfolio to ward off Inflation resilient sales momentum across product categories 2) sustained market share gains through superior market penetration and GTM initiatives and 3) improving margins led by cost reduction program. Crompton remains upbeat on the future demand trends given 1) encouraging secondary sales data despite likelihood of up stocking by trade ahead of price hikes 2) resilient...
|2021-01-25||Crompton Greaves Con.. +||Edelweiss||412.25||475.00||412.25 (0.70%)||14.42||Buy|
|2020-12-23||Crompton Greaves Con.. +||ICICI Securities Limited||352.70||440.00||352.70 (17.71%)||Target met||Buy|
|2020-10-23||Crompton Greaves Con.. +||Prabhudas Lilladhar||304.15||346.00||304.15 (36.50%)||Target met||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.. +||Dolat Capital||304.15||370.00||304.15 (36.50%)||Target met||Buy|
|2020-10-23||Crompton Greaves Con.. +||Motilal Oswal||305.20||360.00||305.20 (36.03%)||Target met||Buy|
|2020-09-11||Crompton Greaves Con.. +||Motilal Oswal||254.30||310.00||254.30 (63.25%)||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 (70.07%)||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 (69.41%)||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 (64.77%)||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).
|2020-05-18||Crompton Greaves Con.. +||HDFC Securities||202.15||221.00||202.15 (105.37%)||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.. +||Motilal Oswal||202.15||240.00||202.15 (105.37%)||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.. +||Edelweiss||213.00||254.00||213.00 (94.91%)||Target met||Buy|
|2020-05-18||Crompton Greaves Con.. +||Dolat Capital||202.15||260.00||202.15 (105.37%)||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.. +||Prabhudas Lilladhar||211.50||267.00||211.50 (96.29%)||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...