CG Consumer Electricals Q4 Results Review - On The Path To Recovery: Dolat Capital

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .CG Consumer Electricals (CGCEL) registered revenue growth of 15.7% YoY in Q4FY23, driven by 7.7% increase in ECD, partially restricted by 12.1% decline in the Lighting segment. In Q4, CGCEL outperformed peers –Havells (-14%) and Orient (-20%) in the ECD segment. This is mainly attributed to relatively better performance in the Fans category (flattish growth) on the back of calibrated approach to manage BEE transition and improved share in premium fans. We like CGCEL due to its leadership position in core categories, strong distribution network, premiumization and continuous innovation. Merger with Butterfly Gandhimathi (BGAL) should unlock growth & cost synergies and fortify CGCEL’s position in the kitchen appliance category. We build in revenue and PAT CAGR of 11%/26% resp over FY23-FY25E. The stock has corrected 24% YTD. It is trading at the lowest multiple among consumer electrical companies and offers a favorable risk reward. We assume coverage on the stock with a TP of Rs 315 based on 28x FY25E EPS.V-Mart Retail Q4 Results Review - Weak Performance, Recovery In Sight: Dolat Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

CG Consumer Electricals Q4 Results Review - On The Path To Recovery: Dolat Capital

Margins to improve gradually with synergies from the merger, cost control initiatives and better operating leverage.

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CG Consumer Electricals Q4 Results Review - On The Path To Recovery: Dolat Capital

Margins to improve gradually with synergies from the merger, cost control initiatives and better operating leverage.

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