Crompton Greaves Q3 Review: Dolat Capital Maintains 'Buy' On The Stock, Lowers Target Price — Here's Why

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Dolat Capital Report

Crompton Greaves Consumer Electricals Ltd.’s Q3 FY25 results were in line with estimates. Revenue increased 5%, led by 6/3% growth in electrical consumer durables/lighting resp, however, Butterfly Gandhimathi Appliances Ltd. was flattish. ECD revenue was mainly led by pumps and appliances, while fans exhibited mid-single-digit growth.

Ebitdam expanded 180 bps YoY to 10.6% led by soft raw material costs, better product mix and cost optimization measures.

The company is strengthening channel partnerships and accelerating premium offering in fans for the summer season. We believe Crompton is well placed to benefit from-

1. its leadership position in core categories,

2. strong distribution network,

3. innovation and

4. supply chain excellence.

We have pared our FY25/26/27E EPS est. by 5/5/4% to Rs 8.4/10.7/13.2 resp. Maintain ‘Buy’ rating with target price of Rs 444 based on 34x FY27E EPS.

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