Crompton sees margin rebounding with efforts on cost optimisation.
Promoters including, Macritchie Investments PTE Ltd sold 1,88,66,327 shares and Amalfiaco Limited sold 3,22,96,000 shares at Rs 249.20 per share.
While the volumes will continue to grow at a healthy pace due to shorter replacement cycles (reduction in warranty period) and deeper market penetration, the margins will certainly suffer on account of reduction in selling prices.
The cut in target price by the research house is after it reduced FY19-21 EPS estimate by 6 percent to account for a weaker outlook.
Crompton is continuously working on product innovation, diversification and premiumisation and also gaining market share across segments and products.
Electricals consumer durables segment registered a 14.7 percent growth YoY in revenue at Rs 925 crore with its EBIT rising 27.4 percent to Rs 180 crore in Q1.
Valuations of the stock are undemanding at 28x March 2020 expected earnings per share, it said.
Edelweiss is bullish on Crompton Greaves Consumer Electrical has recommended buy rating on the stock with a target price of Rs 280 in its research report dated May 16, 2018.
Crompton aims to introduce 1-2 innovate products in each season across categories.
Rajesh Agarwal of AUM Capital recommends buying Kotak Mahindra Bank with target of Rs 1240 and stop loss at Rs 1185, a buy in Selan Exploration Technology with target at Rs 270 and stop loss at Rs 252 and a buy also on IRB Infrastructure Developers with target at Rs 295 and stop loss at Rs 272.
Crompton Greaves Consumer Electricals has launched a new range of fans and a window cooler.
The company's earnings visibility may improve by virtue of a strong order book and a shift towards product premiumisation.
Crompton Greaves Consumer Electrical reported a mixed performance in Q1. In an interview to CNBC-TV18, Shantanu Khosla, MD of the company Industries spoke about the results and his outlook for the company.
Crompton Greaves Consumer Electrical today reported a 29.77 percent increase in standalone net profit at Rs 86.44 crore for the fourth quarter ended on March 31.
Rajat Bose of rajatkbose.com is of the view that one may stay invested in CG Power and Industrial Solutions.
On March 17, 2017 Vanguard Funds Public Limited Company Vanguard FTSE All Wor bought 49,73,627 shares of Crompton Greaves Consumer Electrical.
Crompton Greaves Consumer Electrical expects demand, hit by demonetisation, to be back to normal in 3-6 months.
Axis Direct recommended hold rating on Crompton Greaves Consumer Electricals with a target price of Rs 180 in its research report dated February 01, 2017.