ICICI Direct has given Buy recommendation for Crompton Greaves Consumer with a target price of Rs. 525 in its research report issued on Oct 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 27%. The company has enhanced 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 introduce FY24E estimates and roll over valuation at FY24 valuing the company at Rs 525 i.e. 40x P/E on FY23E EPS.

 

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