Jefferies has maintained its ‘buy’ rating on Crompton Greaves Consumer Electricals stock with a target price of ₹480, reflecting optimism about the company’s growth prospects in the fans vertical. During their analyst meet, Crompton’s management discussed new launches and innovations ahead of the summer season, particularly in the premium and BLDC fans segments.
Jefferies highlighted that premium fans are growing at 2.5 times the rate of non-premium fans, with the premium segment now accounting for approximately 25% of the overall fans category, compared to 12-15% five years ago. Crompton has undertaken 4-5 tranches of price hikes (1.0-1.5% each) over the past 5-6 quarters. The company expects double-digit growth in premium and BLDC fans and single-digit growth in the mass category this summer.
Jefferies also estimates a 22% EPS CAGR for FY24-27, with the FY26 price-to-earnings (PE) ratio projected at 32x, underscoring its positive outlook on Crompton’s strategic direction and product mix shift towards premiumisation.
Crompton Greaves Consumer’s stock price performance:
On February 27, Crompton Greaves’ share price closed at ₹322.75, down by ₹8.75 or 2.64%. Despite Jefferies’ positive outlook on the company’s growth potential from new product launches and premiumisation, the stock witnessed a decline, reflecting cautious investor sentiment in the current market scenario.
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