ICICI Direct has given Buy recommendation for Crompton Greaves Consumer with a target price of Rs. 540 in its research report issued on Jul 26, 2021

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 electrical consumer durables (78% of revenue) and lighting businesses (22% of revenue). Market leader in the domestic fan industry with value market share of 24%. The company has increased focus on increasing market share in home appliances categories like (air coolers, water heater and kitchen appliances) Robust balance sheet with RoE & RoCE of 34% & 39% (three-year average), respectively, with stringent working capital policy

Outlook

We maintain our BUY rating on the stock  We value CGCEL at Rs 540 i.e. 45x P/E on FY23E EPS

 

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