Hold Crompton Greaves Consumer; target of Rs 335: ICICI Direct

ICICI Direct's research report on Crompton Greaves Consumer

Crompton Greaves Consumer (CGCEL) is among India’s leading fast moving electrical goods (FMEG) companies, present in ECD (~67% of revenue), Butterfly (~17% of revenue) and lighting (~16% of revenue). Market leader in the domestic fan industry with value market share of 27%. The company has enhanced focus on increasing market share in kitchen appliances category through expansion of Butterfly brand across India • Robust balance sheet with RoE & RoCE of ~30% each (three-year average), respectively, with stringent working capital policy.

Outlook

We now value the merged entity at 30x FY25E earnings. We maintain our target price of Rs 335/share and HOLD rating on the stock.