Nomura has maintained its ‘buy’ rating on Crompton Greaves Consumer Electricals stock with a target price of ₹447, highlighting the company’s strategic focus on energy efficiency and smart tech integration in the consumer electricals space. The brokerage noted that Crompton recently unveiled two cutting-edge platforms, Nucleus and Xtech, which are designed to drive energy efficiency and smart technology integration.
Management emphasized that these new platforms are highly scalable, more durable on electronics, and more efficient than peers, allowing the company to offer higher warranty to customers compared to its competitors. Nomura expects price hikes and operating leverage to drive EBITDA margin growth from 11% in FY25 to 12.2% by FY27, resulting in a healthy 22% EPS CAGR over the forecast period.
Yesterday’s stock price performance:
On February 27, Crompton Greaves’ share price closed at ₹322.75, down by ₹8.75 or 2.64%. Despite Nomura’s positive outlook on the company’s growth potential from its new technology platforms, the stock witnessed a decline, reflecting cautious investor sentiment in the current market scenario.
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