Anand Rathi 's research report on Crompton Greaves
Aided by cost controls, a stable EBITDA margin (13.9%) in Q1 despite a 47% y/y decline in revenues strengthens our belief in Crompton’s resilient business model. On a gradual recovery in Q1, we expect a return to normalcy by Q3 with better margins as some cost savings would be retained. `9.7bn cash after the `3bn NCD issue and tightening WC will be used to re-invest in future growth incl.
inorganic expansion and greater localisation. Thus, we maintain our Buy recommendation on the stock with a higher target of `281 (32x FY22e P/E), earlier `270.
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.