Buy Crompton Greaves Consumer; target of Rs 549: Anand Rathi
Anand Rathi is bullish on Crompton Greaves Consumer has recommended buy rating on the stock with a target price of Rs 549 in its research report dated July 26, 2021.
July 27, 2021 / 04:52 PM IST
"India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries (PI) as they provide long-term earnings visibility. We also like UPL due to robust growth outlook and reducing debt concerns and SRF due to rising contribution from the chemicals business," JM Financial research report.
Anand Rathi's research report on Crompton Greaves Consumer
Crompton’s market-share gains continued in Q1 (fans up 1%, dominant position in geyser/domestic pumps/B2C LED). B2B/B2G lighting remained in the slow lane while the growth/margin outlook of B2C LED has improved structurally.
We are positive on the company’s prospects owing to its brand image, product innovation and vast scope for portfolio/network expansion (incl. inorganically). On 16%/20% revenue/PAT CAGRs over FY21-23, ~30% RoE and strong FCFs, we retain a Buy, with a target of Rs.549 (45x FY23e P/E, ~10% discount to Havells).
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