Nomura has reiterated its ‘Buy’ call on Crompton Consumer Electricals, setting a target price of ₹498/share, which implies a potential upside of 12.8% from the current market price of ₹441.55/share. Following an analyst meeting with the management, Nomura remains confident in the company’s strategic initiatives and long-term growth outlook.
The company emphasized that its premiumisation focus across segments is on track, with multiple initiatives continuing to push this strategy. In the fans segment, Crompton expects to benefit from stricter government regulations on efficiency norms with the introduction of BEE 2.0 norms in FY26 and BIS quality checks, which are likely to drive market share gains for organized players.
Crompton is also focusing on expanding alternate channels like modern trade and e-commerce, which it believes will support its premiumisation drive.
On Butterfly Gandhimathi Appliances, which Crompton acquired, the management stated that the restructuring phase is largely complete and that revenue growth should become more visible in the second half of FY25.
Nomura noted that while Q1FY25 was boosted by a strong summer season, growth in non-summer categories has remained steady and is expected to continue similarly in Q2FY25. Despite trimming FY25-27 estimates by 1-3%, Nomura remains positive, projecting a revenue/EBITDA/PAT CAGR of 13%/22%/27% over FY24-27E.
