Crompton Greave Consumer Shares Rise Over 6% After Motilal Oswal Initiates Bullish Coverage
The brokerage believes Crompton Greave's is entering a new phase where investments in technology, brand strength and execution capabilities are expected to unlock long-term value.
The shares of Crompton Greave Consumer Electricals Ltd. rose over 6% on Thursday after Motilal Oswal Financial Services Ltd. initiated bullish coverage on the stock projecting a 40% upside potential from its previous close.
Motilal Oswal Securities has initiated buy coverage with a target price of Rs 350, citing improving growth visibility and a strategic transformation under its “Crompton 2.0” initiative. The brokerage believes the company is entering a new phase where investments in technology, brand strength and execution capabilities are expected to unlock long-term value.
Motilal Oswal highlights that the company has renewed its focus on revenue growth as the key driver of profitability. This transition involves higher spending on people, processes, brand building, consumer-centric innovation and more advanced go-to-market strategies. While these investments have weighed on near-term margins, the brokerage sees them as critical for building a stronger and more scalable business.
Earnings are expected to recover meaningfully after a weak financial year 2026, which was impacted by weather-related disruptions that affected the electrical consumer durables segment.
Motilal Oswal estimates earnings before interest, tax, depreciation and amortisation and profit after tax to grow at a compound annual growth rate of 17% and 21%, respectively, over financial years 2026 to 2028, following a decline of 12% and 16% in financial year 2026.
Revenue is projected to grow at a compound annual growth rate of 8% over financial years 2026 to 2028, driven by balanced growth across segments. Electrical consumer durables are expected to grow at 8%, lighting at 6% and Butterfly Gandhimathi Appliances at 10%.
Margins are also expected to improve, supported by pricing actions, product premiumisation and cost-efficiency measures. Operating profit margin is forecast to rise to 10.3% in financial year 2027 and 11.2% in financial year 2028, from 9.7% in financial year 2026.
Motilal Oswal also sees strategic value in Crompton’s increased stake in Butterfly Gandhimathi Appliances, which has expanded its appliances portfolio and offers scope for revenue and cost synergies. Higher advertising and promotional spends are expected to strengthen brand equity and support sustained growth.
In a bull-case scenario, the brokerage sees upside potential to Rs 460, driven by faster margin recovery and stronger earnings growth.
Crompton Green Consumer Share Price Today
The scrip rose as much as 6.38% to Rs 264.30 apiece on Thursday, the highest level since Dec. 2. It pared gains to trade 5.66% lower at Rs 262.90 apiece, as of 11:10 a.m. This compares to a 0.06% advance in the NSE Nifty 50 Index.
It has fallen 33.48% in the last 12 months. Total traded volume so far in the day stood at 3.55 times its 30-day average. The relative strength index was at 37.15.
Out of 38 analysts tracking the company, 35 maintain a 'buy' rating, two recommend a 'hold,' and one suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target of Rs 367.32 implies an upside of 39.3%.
