HDFC Securities is bullish on Crompton Greaves Consumer Electricals has recommended buy rating on the stock with a target price of Rs 290 in its research report dated July 26, 2018.
HDFC Securities's research report on Crompton Greaves Consumer Electricals
Crompton’s 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 continued to gain market share in fans (~27% now vs. 23% in FY16). Crompton’s premium (20% mix) and mass-premium fans (60% mix) are growing faster than the industry driven by innovations like Anti-dust and Air 360.
We model 23% EPS CAGR over FY18-21E. At 35x Jun-20 EPS, our TP is at Rs 290. We reiterate BUY.
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