Anand Rathi expects growth momentum to sustain in H2 FY27, driven by sustained summer-product demand amid the El Nino cycle, continued Butterfly recovery and incremental contribution from rooftop solar and wires. Anand Rathi models a 16.7% PAT CAGR over FY26-29E, (in-line with industry), with 110 bps margin expansion driven by operating leverage. Valuation below ~2SD limits downside, while strong brand equity, category leadership, consistent execution and a structurally superior margin profile should support valuations.
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Anand Rathi Report
The brokerage firm Anand Rathi has maintained its Buy rating on Crompton Greaves Conusmer Electricals Ltd. with a target price of Rs 360, based on 30 times H1 FY29E earnings per shares, in line with peers.
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Crompton reported in-line Ebitda in Q2 FY27, aided by broad-based growth and controlled selling, general and administrative despite raw material headwinds.
Electrical consumer durable and lighting growth lagged OEL, while ECD margin remained ahead; Butterfly's recovery remained on track.
The brokerage expects growth momentum to sustain in H2 FY27, driven by sustained summer-product demand amid the El Nino cycle, continued Butterfly recovery and incremental contribution from rooftop solar and wires.
Anand Rathi models a 16.7% PAT CAGR over FY26-29E, (in-line with industry), with 110 bps margin expansion driven by operating leverage.
Valuation below ~2SD limits downside, while strong brand equity, category leadership, consistent execution and a structurally superior margin profile should support valuations.
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Low capex intensity and stable working capital, alongside healthy dividend payouts, should drive ~300bps RoCE expansion to 22.3% by FY29.
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