1 month ago
Prabhudas Lilladher is bullish on Crompton Greaves Consumer Electricals has recommended buy rating on the stock with a target price of Rs 359 in its research report dated March 28, 2024.
Broker Research
March 28, 2024 / 04:42 PM IST
buy
Prabhudas Lilladher's research report on Crompton Greaves Consumer Electricals
We met with the management of CROMTON to discuss the demand, product diversification, pricing, and market share & penetration. The company’s growth strategy at restricted margins to continue as it 1) emphasis on product diversification across segment with focus on premium portfolio, 2) Innovation and R&D focus to continuously increase SKUs across BUs, 3) diversified GTM channels (enabled by technology) by leveraging new channels (ecom, modern retails), 4) increased focus on A&P and 5) growing new businesses. We downward revise our FY24/25/FY26E earnings by 1.5%/4.2%/6.7% to factor in margin contraction in ECD & Butterfly businesses with higher overhead expenses to continue in coming quarters.
Outlook
We estimate Sales/EBITDA/PAT CAGR of 13.0%/19.1%/25.9% over FY24-25E. Maintain ‘Buy’ with revised TP of Rs 359 (earlier Rs 384), valuing at 35x FY26 earnings.
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