Buy Crompton Greaves Consumer Electricals; target of Rs 350: Motilal Oswal

Motilal Oswal is bullish on Crompton Greaves Consumer Electricals recommended buy rating on the stock with a target price of Rs 350 in its research report dated March 05, 2026.

Broker Research

March 06, 2026 / 11:53 IST

Buy

Motilal Oswal's research report on Crompton Greaves Consumer Electricals

Crompton Greaves Consumer Electricals’ (CROMPTON) core total addressable market (TAM)—comprising fans, residential & agri pumps, lighting, and appliances (LDA & SDA), including kitchen appliances—stood at INR770b. Its successive entry into solar pumps, rooftop solar, and now residential wires expands this TAM to over INR1.63t, effectively doubling its market opportunity. CROMPTON is the #1 player in fans, #1 brand in residential pumps, #2 in water heaters (general trade), ranks among the top three players in air coolers, and is a top-three brand in kitchen appliances (Butterfly) in South India. Fans remain CROMPTON’s primary growth engine, with premium products (BLDC and premium induction) now contributing ~25% of the mix vs. ~12– 15% five years ago, targeting ~40% over the medium term. Channel checks indicate proactive inventory build-up ahead of the summer season, signaling improving demand confidence. Price hikes of 2-3% taken in JanFeb’26 are expected to partly offset input cost pressures, with further hikes expected in the coming months.

Outlook

We expect CROMPTON to report a revenue/EBITDA/PAT CAGR of 8%/14%/17% over FY26-28. We estimate its OPM to expand to ~11% by FY28 from ~10% in FY26. CROMPTON trades at 29x/24x FY27E/FY28E P/E. We reiterate our BUY rating with a TP of INR350, based on 33x FY28E EPS.

For all recommendations report, click here