Crompton Greaves Q2 Review: Jefferies Stays Positive Despite Bottom-Line Decline — Here's Why

Shares of Crompton Greaves Consumer Electrical Ltd. slipped in early trade on Friday morning, after the company reported soft financials for the September quarter.

Crompton's stock price fell nearly 3% to Rs 271.10 apiece, after reporting a 43% annual decline in net profit to Rs 71 crore. Revenue from operations rose 1% to Rs 1,915 crore from Rs 1,896 crore, driven by underlying volume growth of 3%.

Earnings before interest, tax, depreciation, and amortisation fell 22.6% to Rs 158 crore in the quarter, against Rs 204.1 crore a year ago.

Brokerage firm Jefferies assigned a target price of Rs 410 to the counter, reiterating its 'buy' call.

Jefferies notes that Crompton Consumer’s first half of FY26 was hit by muted demand for summer products due to an extended monsoon. Despite this, Crompton’s ECD volume grew 3%, and the sales decline was smaller than most peers. Butterfly, its subsidiary, delivered a strong profit jump of 34% YoY.

The company remains debt-free. Jefferies estimates 14% sales CAGR for FY25-28. Crompton’s risk-reward looks attractive given its strong core categories, Butterfly traction and new pump orders, says the brokerage.

The scrip fell as much as 2.69% to Rs 271.10 apiece. It pared losses to trade 2.12% lower at Rs 272.65 apiece, as of 09:30 a.m. This compares to a 0.63% decline in the NSE Nifty 50 Index.

It has fallen 31.13% on a year-to-date basis and 30.09% in the last 12 months. The relative strength index was at 38.40.

Out of 39 analysts tracking the company, 34 maintain a 'buy' rating, four recommend a 'hold,' and one suggests 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 39.5%.