Crompton Greaves Consumer Electricals Ltd. share price target

CGCEL has strong presence across fans, pumps, lighting and appliances. Company has been market leader in fans, domestic pumps and street lighting for over 20 years. Fans are the highest contributors to the revenue, contributing 45% followed by lighting (28%), pumps (20%) and appliances (6%). CGCEL's business is classified into core portfolio (includes non premium...

In a tough quarter, the real hero for CGE was expansion in gross margin of ~250 bps YoY. Our thesis is playing out -Savings from gross margin expansion on: (1) Cost efficiency across categories, (2) Premiumization and (3) Selective price increases will be partly invested back into the business throu..

Well-positioned to cash in the expected double-digit growth in light electrical industry ff Margins continue to improve: CGEL's overall EBITDA margins improved by 95bps yoy in 3QFY17 driven by cost saving initiatives. Margin expansion was mainly driven by company's electrical consumer durables segment where EBIT margins expanded by 329bps yoy on account of product mix in favor of the premium fans....

Set to Cash in Expected Double-digit Growth in Light Electrical Industry ff Sturdy Growth in Operating Performance: CGEL's overall EBITDA margins improved by 381bps yoy driven by cost saving initiatives. Higher growth in business verticals coupled with improvement in margin led to 40% yoy growth in...

Innovative products, deepening distribution reach, operational efficiencies and strengthening of critical capabilities have anchored CGCEL?s faster-than-industry growth pace over the years..

ff Cost Saving Initiatives Drive Operating Performance: CGEL's overall EBITDA margins rose by 113bps qoq driven by cost saving initiatives. However, lighting products saw margins decline of 60bps to 5.8% mainly due to higher advertisement...

In our meeting with Mr Shantanu Khosla, Managing Director, Crompton Greaves Consumer Electricals (CGCEL), we discussed the company's three-tier strategy to drive profitable growth. CGCEL is focusing on sustaining and growing its Core segments of...