Anand Rathi has given Buy recommendation for Crompton Greaves Consumer with a target price of Rs. 549 in its research report issued on Jul 26, 2021
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).