Buy Crompton Greaves Consumer Electricals, target price Rs 485: LKP Securities

Synopsis

Crompton Greaves Consumer Electricals key Products/Revenue Segments include Electrical Consumer Durables, Lighting Products, Scrap, Sale of services and Export Incentives for the year ending 31-Mar-2022.

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Promoters held 2.54 per cent stake in the company as of 30-Sep-2022, while FIIs owned 48.16 per cent, DIIs 45.21 per cent.

has buy call on

with a target price of Rs 485. The current market price of

Greaves Consumer Electricals is Rs 347.95. Time period given by analyst is a year when Crompton Greaves Consumer Electricals price can reach defined target.

Crompton Greaves Consumer Electricals, incorporated in the year 2015, is a Mid Cap company (having a market cap of Rs 22122.46 Crore) operating in Consumer Durables sector.

Crompton Greaves Consumer Electricals key Products/Revenue Segments include Electrical Consumer Durables, Lighting Products, Scrap, Sale of services and Export Incentives for the year ending 31-Mar-2022.

Financials


For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 1717.80 Crore, down -8.30 % from last quarter Total Income of Rs 1873.35 Crore and up 22.53 % from last year same quarter Total Income of Rs 1401.99 Crore. Company has reported net profit after tax of Rs 130.71 Crore in latest quarter.

The company’s top management includes Mr.H M Nerurkar, Mr.Shantanu Khosla, Mr.Mathew Job, Mr.Promeet Ghosh, Mr.D

, Mr.P M Murty, Ms.Smita Anand, Mr.P R Ramesh, Mr.Hiroo Mirchandani. Company has Sharp & Tannan as its auditors. As on 30-09-2022, the company has a total of 64 Crore shares outstanding.

Investment Rationale

Overall strong focus on profitability and industry leading RoCE and FCF profile as well as numerous initiatives embarked upon by the company(cost control, GTM Distribution etc.) makes us positive. The brokerage expects consolidated revenue/EBITDA/PAT CAGRs of 20%/18%/15% over FY22-25E. The brokerage initiates with a Buy with a target of Rs 485,valuing Crompton at 34x FY25E EPS.


Promoter/FII Holdings

Promoters held 2.54 per cent stake in the company as of 30-Sep-2022, while FIIs owned 48.16 per cent, DIIs 45.21 per cent.

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