Buy Crompton Greaves Consumer; target of Rs 270: Anand Rathi
Anand Rathi is bullish on Crompton Greaves Consumer has recommended buy rating on the stock with a target price of Rs 270 in its research report dated May 18, 2020.
May 20, 2020 / 04:25 PM IST
Anand Rathi 's research report on Crompton Greaves Consumer
Hurt by the Covid’19-related sales loss in Mar and tax refund in the previous period, Crompton’s revenue / EBITDA / PAT slid 16% /18% /30% y/y, leading to a weak Q4. Despite poor sales, the high 13.6% EBITDA margin was due to superior sales mix and ongoing cost optimisation. Healthy net working-capital and cash-flows were steady. Management says the good growth momentum in categories persisted in Jan-Feb and resulted in market-share gains. A lean and flexible cost structure and leader in its key product categories are key positives to help Crompton comfortably sail through a challenging FY21.
We maintain our Buy recommendation and target of `270 (32x FY22e P/E).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.