Crompton Greaves jumps 5% as management aims to double revenue in 5 years

Crompton Greaves | CMP Rs 420 | Shares slipped 5 percent recently held an analyst meeting. In the meeting, the electric goods player siad that the demand is likely to be average in Q2, as compared to Q1. The first quarter saw heavy demand on account of heatwave. Morgan Stanley maintained its 'Equal-weight' rating on stock with a target price of Rs 323 per share, representing a potential downside of over 26 percent from the current market price.

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26 Aug, 2025 12:21

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Crompton Greaves shares jumped five percent in trade after sharing its strong revenue guidance with international brokerage JP Morgan.

The broking firm held a series of meetings with consumer-facing companies, including consumer discretionary player Crompton Greaves Consumer.

The electrical goods manufacturer's management shared that they were attempting to double their revenue over the next five years. However, in the near-term, demand trends remain subdued.

For FY24, the firm's reported Rs 6,388 crore from its total revenue from operations. The profit after tax came in at Rs 466 crore for the year.

Crompton Greaves is currently focussing on its premiumisation thrust, and ramping up distribution of fans. Additionally, the firm will aim to expand into three categories over the next five years. Over the long term, the firm's management seeing a 12 percent EBITDA margin.

The international brokerage maintained its 'neutral' call on the firm, with a target price of Rs 380 per share, which implies a downside of around nine percent from current levels.

However, the markets were enthused with the revenue guidance, as shares of the company were trading at Rs 430 per share on the NSE at 11.45 am, higher by 3.3 percent.

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Last month, Morgan Stanley maintained its 'equal-weight' rating on stock with a target price of Rs 323 per share.

The brokerage said the firm's innovations and brand investments have significantly ramped up. Supply chain transformation is underway (outsourcing lighting, insourcing fans).

However, there will be near-term softness in demand due to pre-buying in cooling devices following a strong summer.

Penetration challenges remain in certain categories, especially in fans in North and East India. Lighting business is underdeveloped outside South India. Kitchen appliances have yet to realise full potential in West and East India.

Over the past 12 months, shares of Crompton Greaves Consumer Electricals jumped 40 percent in trade, outperforming the Nifty 50 index that gained around 32 percent during the same time.

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