Crompton Greaves Consumer Gets 'Buy' Call As MOSL Initiates Coverage
The brokerage noted that the company is investing in the transition from tradition to technology.
Motilal Oswal Financial Services has initiated coverage on Crompton Greaves Consumer Electricals Ltd. with a Buy rating and a target price of Rs 350.
The brokerage noted,
Crompton 2.0 unlocking potential
Investing in the transition from tradition to technology
A renewed focus on revenue growth to drive profitability
Higher advertising expenses to strengthen brand value
Earnings and return ratios to improve following a dip in FY26E
Motilal Oswal estimates an Earnings Before Interest, Taxes, Depreciation and Amortisation growth and Profit After Tax growth at a Compound Annual Growth Rate of 17% and 21%, respectively, over the Financial Years 2026 - 2028.
Crompton Greaves Consumer Electricals reported a 41.1% decline in its consolidated net profit to Rs 75.42 crore in the September quarter of FY26. The company had posted a net profit of Rs 128.07 crore in the July-September quarter a year ago.
Its revenue from operations rose 1% to Rs 1,915.57 crore in the September quarter of FY26. It stood at Rs 1,896.15 crore in the corresponding quarter a year ago.
Crompton Greaves Consumer Electricals is a leading player in the consumer durables and lighting segment with over 85 years in the industry.
Earlier on Wednesday, The company announced that it received a demand order from the office of the Assistant Commissioner, Baddi, Himachal Pradesh, for the period April 2021 to March 2022.
The order imposes a total demand of Rs 1.47 crore, which includes Rs 83.35 lakh in tax, Rs 55.78 lakh as interest, and Rs 8.33 lakh as penalty under Section 73 of the GST Act, 2017. The company has stated that it plans to appeal the order before the Commissioner (Appeals) and expects a favorable outcome based on legal advice and the merits of the case.
