Crompton Greaves Q1 Review - Strong All-Round Show With Broad Based Growth; Reiterate Add: Yes Securities

NDTV Profit’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 NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Crompton Greaves Consumer Electricals Ltd. has reported lower than estimated revenue growth on account of subdued performance of Butterfly Appliances. Electrical consumer durable revenue grew 21% (in line with estimates). Fans have witnessed growth of 16%, pumps (+30%) and appliances (+24%) registering strong growth. Appliance growth has been driven by air-coolers and mixer grinders. Air-cooler delivered volume growth of 68%, supply glitch had resulted in some volume loss for the air-coolers. Company continues to gain share in its key categories of fans, pumps and appliances. Margins in ECD stood at 15% expansion of 227 bps YoY despite higher advertising and promotion spends. Lighting revenue growth was impacted as company has stopped selling conventional lighting and there has been price erosion in LED lights, B2B is segment saw robust growth. As far as Butterfly appliances is concerned Crompton is implementing corrective action and expects growth from H2 FY25. Crompton has delivered on the growth as well as margin front and management is expecting industry leading growth as it drives premiumization across the product category. Crompton’s 2.0 strategy has started to pay dividends with company gaining market share in its core categories and profitability has started to improve. Crompton would be focusing on growth with improvement in profitability. The company has started to deliver on expectations on consistent basis and should command higher multiple in line with peers. We now increase our target multiple to 45 times and reiterate our Add rating with target price of Rs 517. Moreover, company is generating strong cashflows and has now become net cash company. .Click on the attachment to read the full report:.Maruti Suzuki Q1 Results Review - Strong Performance Despite Weak Demand: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit 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 NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Crompton Greaves Q1 Review - Strong All-Round Show With Broad Based Growth; Reiterate Add: Yes Securities

The brokerage believes initiatives taken by the company of sustained efforts and investments is bearing fruits resulting in market share gains.

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