Accumulate Crompton Greaves Consumer Electricals; target of Rs 476: Prabhudas Lilladher

Prabhudas Lilladher's research report on Crompton Greaves Consumer Electricals

Crompton Greaves Consumer Electricals (Crompton) has delivered consistent growth in ECD from the last four quarters driven by a) robust growth momentum in fans (+16% YoY), where market share reached 28-29%, b) strong growth in pumps (+30% YoY) driven by both residential and agri, along with a healthy order pipeline in solar pumps, and c) appliances (+24% YoY) driven by significant volume growth in air coolers & mixer grinders, premiumisation & channel expansion. The company continues to focus on channel expansion (alt channel grew by 30% YoY), A&P spends (29% YoY standalone basis), new product launches (41 in Q1FY25) along with expanding the premium portfolio, and corrective price actions. We estimate revenue/EBITDA/PAT CAGR of 16.5%/23.9%/29.9% over FY24-26E.

Outlook

We roll forward our TP to Jun’26 and maintain ‘Accumulate’ rating with revised TP of Rs 476 (Rs462 earlier), based on 40x Jun’26 earnings.