Prabhudas Lilladher's research report on Crompton Greaves Consumer Electricals
We remain positive on Crompton given Strong growth potential in core categories of Fans (premium fans), Pumps led by Crest mini, Appliances (geyser and Air Coolers), LED lighting (innovations like anti-bacterial bulbs) and increasing GTM (Go to market) reach in distribution. 3Q numbers were in line with Revenue and PAT growth of 9.8% & 14.6% YoY. Electric Consumer Durables (ECD) reported 19.4% EBIT growth and 50bps margin expansion led by strong growth in fans, pumps and geysers. The lighting segment reported 37.5% decline in EBIT on price erosion impact.
Outlook
We value the stock at 33x Dec20 EPS. Maintain Buy with a target price of Rs272 (earlier Rs276).
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Read More First Published on Feb 12, 2019 01:36 pm
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