Anand Rathi's research report on Crompton Greaves Consumer
Despite low channel stocks, the muted demand trend is likely to dent Crompton Greaves Consumer’s Q2 figures. Butterfly’s transformation is underway, and management expects to reap the benefits in the near term. Management is working on scaling up alternative channels and developing impulse categories for quick commerce channels. Q2 demand has been muted but we expect sales to pick up in Jan, led by primary channel filling of summer products.
Outlook
The company’s unabated focus on portfolio premiumisation, cost optimisation and strategic pricing initiatives should lead to mid-term margin expansion. We retain our Buy recommendation, with a TP of Rs552.
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