ICICI Securitie`s research report on Crompton Greaves Consumer Electricals
Crompton reported a strong set of numbers in Q4FY25. Highlights: (1) There is revival in revenue growth as well as profitability of Butterfly. It was a drag on consolidated earnings over past seven quarters. With optimization of trade incentives and select price hikes, the profitability has revived. (2) The company has entered in rooftop solar business. It has already invested in supply chain arrangements and also plans to leverage brand and distribution of Crompton.
Outlook
We model Crompton to report revenue/PAT CAGRs of 9%/14.3% over FY25–27E and RoCE to inch upwards over FY25-27. At our DCF-based revised target price of INR 420 (earlier INR 440), implied target P/E works out to 37x FY27E EPS. Maintain BUY.
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