Crompton Consumer | Business Upturn

Morgan Stanley maintains ‘Equal-weight’ call on Crompton Consumer, sees 26.8% downside

News Desk — Thu, 26 Sep 2024 03:17:48 +0000

Morgan Stanley has maintained its ‘Equal-weight’ rating on Crompton Consumer Electricals, with a target price of ₹323/share, representing a potential downside of 26.8% from the current market price of ₹441.55/share. During the recent analyst meet, the company provided key long-term guidance and business updates.

Crompton expects revenue growth in the mid-teens over the next four to five years, with 10-12% growth coming from its base business and an additional 2-3% from new businesses. The company is targeting an improvement in EBITDA margins by around 200 basis points, driven by a better product mix and operational efficiencies.

However, consumer demand in the near term remains weak due to inflationary pressures, with festive demand in South India (Onam) reported as being lower year-on-year.

For Butterfly Gandhimathi Appliances, Crompton implemented price hikes of 2-3% in the past two quarters, and expects margins to improve in the second half of the fiscal year. In the long run, Butterfly is targeting 10% EBITDA margins.

Nomura maintains ‘Buy’ call on Crompton Consumer, sees 12.8% upside

News Desk — Thu, 26 Sep 2024 03:15:12 +0000

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.

Stocks To Watch Today: NMDC, Indiabulls Housing Finance, Muthoot Finance, Crompton Consumer, Utkarsh SFB

Markets Desk — Thu, 15 Feb 2024 00:53:49 +0000

The US markets ended in the green after a day of consolidation. Back home on Wednesday, both Sensex and Nifty staged a sharp recovery in the afternoon trade and managed to end in the green, with the Nifty above 21,800 and the Sensex ending 267 points higher at 71,822. The Nifty Bank surged 1000 points from the day’s low to end at 45,908.

Top stocks to watch today are NMDC, Indiabulls Housing Finance, Muthoot Finance, Crompton Consumer, Utkarsh SFB.

NMDC: Shares of NMDC will be in focus today after the company posted its Q3 earnings. The company’s Q3 net profit surged 62.6% YoY to Rs 1,469.7 crore. The company announced its first interim dividend of Rs 5.75 per share.

Indiabulls Housing Finance: Indiabulls Housing Finance posted a weak set of Q3 earnings. Its Net Interest Income declined 28.3% YoY to Rs 350.1 crore against Rs 488.7 crore. The cost to income ratio came in at 24.4% against 29.35%YOY & 23.9% QoQ.

Muthoot Finance: Muthoot Finance share price will be in focus today on the back of its Q3 earnings. The company’s Gold AUM grew 2.5% on a QoQ basis and 22% on a YoY basis led by higher gold prices while new customer adds slowed. Its overall profit after tax grew 13.9% YoY to Rs 1,027 crore against Rs 901.7 crore posted in the same period a year ago.

Crompton Consumer: Crompton reported a weak set of Q3 earnings with its net profit declining 3.1% on a YoY basis to Rs 85.45 crore. The company’s revenue surged 11.6% to Rs 1,693 crore from Rs 1,516 crore in the same period a year ago.

Utkarsh Small Finance Bank: Utkarsh Small Finance Bank in an exchange filing on Tuesday said that the bank’s board will evaluate a proposal for a reverse merger with its holding company, Utkarsh CoreInvest.