CLSA has maintained its ‘Outperform’ rating on Crompton Greaves Consumer Electricals Ltd, with a target price of ₹375, implying an 18% upside from the current market price of ₹317.90.
The brokerage acknowledged that Crompton’s Q1FY26 consolidated results were below expectations, with a 19% YoY decline in PAT driven by weak growth and margin pressure. Performance in the consumer durables segment was impacted by seasonality, leading to an 8% drop in sales. However, the lighting business remained flat YoY but delivered margin expansion, aided by a favourable product mix.
Despite the subdued quarter, CLSA noted that Crompton has gained market share across categories. The company also hinted at the emergence of green shoots toward the end of the quarter. The brokerage believes that successful execution of the company’s revamped strategy aimed at driving growth in both new and existing categories will be critical for a potential rerating.
Disclaimer: The views and recommendations expressed in this article are those of CLSA as reported. This does not constitute a recommendation by this publication. Investors are advised to consult a certified financial advisor before making any investment decisions.
