Crompton Greaves Consumer Electricals Ltd. share price target

We model 23% EPS CAGR over FY18-21E. At 35x Jun-20 EPS, our TP is at Rs 290. We reiterate BUY. Cromptons net revenue grew by 20% like-like to Rs 12,039mn (exp. 14%). EBITDA/APAT growth was robust at 29/30% driven by cost rationalization and premiumisation (exp. 32/35%). Cromptons ECD biz (~77% of revenues) bounced back with 23% growth on account of stabilizing distribution channel and favorable base (-9% in 1QFY18). Lighting (ex-EESL) was up by 15% (10% in 1QFY18).

Crompton Greaves Consumer Electricals Ltd. (CGCEL) Q1FY19 reported sales at INR 1,204cr grew ~14% y-o-y, ~3% above our estimates.

Consumer business of CGCEL is expected to sustain growth, going forward on the back of strong demand and higher outsourcing. Its core product portfolio comprising of fans, lights and pumps is expected to get a boost owing to higher disposable income following 7th Pay...

We model 25% EPS CAGR over FY18E-20E. At 35x Mar-20 EPS, our TP is at Rs 285. We reiterate BUY. Cromptons net revenue grew by 13% like-like to Rs 11.3bn vs. expectation of 14%. EBITDA/APAT growth was robust at 28/30% driven by cost rationalization and premiumisation vs. expectation of 24/23%.

Crompton Greaves Consumer Electricals Ltd. (CGCEL) Q4FY18 reported sales at INR 1,126cr grew ~7.6% y-o-y, below our estimates.

Revenue from lighting business which contributed 30% to CGEL's total sales grew by 11.8% YoY to Rs3.3bn driven by strong focus on B2C business led by distribution availability. However, revenue from Consumer Electrical segment which contributed ~70% to CGCEL's total revenue marginally grew by 1.8% YoY to Rs7.8bn mainly owing to lower volume in low-priced agro pump. On the back of steadily intensifying competition, CGCEL plans to redesign pumps at lower price points. Sales volume of premium fans which forms 20% of total fans business grew by a strong 25% YoY. While CGCEL sold anti dust fans worth Rs2.0bn, cost optimisation led to healthy growth in B2C lighting business. Southern markets continued to remain strong...

Crompton Greaves Consumer Electricals (CGCEL), the demerged consumer business of Crompton Greaves (CG), is the undisputed market leader in the fans segment and a formidable branded player in the light

Crompton Greaves Consumer Electrical Ltd Q3FY18 results comment Revenue decreased by 2.24% to Rs. 938.19 Cr in Q3FY18 when compared to the previous quarter. On the other hand, it increased by 6.71% when compared with Q3FY17.

We reiterate BUY with a TP of Rs 290, based on 35x Dec-19 EPS. Crompton disappointed on revenue growth while EBITDA margin was inline. Net revenue grew by 6.7% to Rs 9.4bn while like-to-like revenue growth was at 12% (expectation was 15%). The good: lighting growth was at 23%, the bad: ECD segment posted only 7% growth and the ugly: geysers reported volume decline in a seasonally strong quarter! Crompton gained retail market share in Fans and LED lamps. Focus on premiumisation aided in posting >25% growth in premium fans and 57% in LED lamps. Premium fan contributes ~20% in total fans vs. 7% in FY15. Within 2 years of pursuing the LED business, it now contributes >70% of lighting business which is a remarkable achievement.

Crompton Greaves Consumer Electricals Ltd. (CGCEL) Q3FY18 reported sales at INR 938cr grew ~6.7% y-o-y and ~11% below our estimates. The slow down in growth was due to subdued ECD business...