Motilal Oswal's research report on Crompton Gr. Con
To mitigate the cost pressure on account of rise in key raw material prices (copper), Crompton went in for price hikes in the Fans category (1.5-2.0%) across its range. Crompton expects the Fans industry to register a 6-7% volume growth. Premium category sales, which now accounts for 18-20% of the overall Fans category sales, remains Crompton’s focus area.
Outlook
We like CROMPTON for its strong product portfolio, established brands, market leadership, wide distribution network and a robust ROE/RoCE profile. We maintain our Buy rating, with a TP of INR305 (39x FY20E EPS, in line with Havells).
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