Buy Crompton Gr. Con; target of Rs 240: Motilal Oswal
Motilal Oswal is bullish on Crompton Gr. Con has recommended buy rating on the stock with a target price of Rs 240 in its research report dated May 18, 2020.
May 19, 2020 / 11:00 AM IST
Motilal Oswal 's research report on Crompton Gr. Con
CROMPTON was all set to witness one of its strongest quarter (based on Jan-Feb’20 sales) before the onset of the COVID-19 led disruption in Mar’20, which led the sales decline across categories in 4QFY20. While management is optimistic of supply side getting back to normal as the lockdown gradually eases, it still remains cautious on the demand outlook. - Volume growth was robust during Jan-Feb’20 (33% YoY across ECD and B2C Lighting). Primary sales have resumed from end-Apr’20, and Fans and Pumps have seen good pick-up in the South and East India in May’20. We have cut our FY21E/FY22E earnings estimates by 22%/11% to build in the impact caused by the COVID-19 disruption and modest demand outlook ahead.
We maintain our Buy rating with TP of INR240 (prior: INR270).
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