Morgan Stanley has maintained an ‘Overweight’ rating on CG Consumer, setting a target price of ₹402 per share, indicating an 18.5% upside potential from the current market price of ₹339.45.
Key takeaways from the report:
- Q3FY25 earnings were in line with expectations, reflecting stable business performance.
- Electric consumer durables segment exceeded margin expectations, benefiting from calibrated pricing strategies and cost optimization measures.
- Butterfly Gandhimathi’s revenue fell short of expectations, signaling a weaker-than-anticipated performance in this segment.
- Premiumization trends were observed in fans, residential pumps, and decorative lighting, supporting higher-margin growth areas.
With steady earnings, a strong margin profile, and a shift towards premium product categories, Morgan Stanley remains bullish on CG Consumer’s long-term growth potential.
Disclaimer: The above article is for informational purposes only and does not constitute financial advice. Investors are advised to consult their financial advisors before making any investment decisions.