Buy Crompton Greaves Consumer Electricals; Target Set at Rs 441 by Prabhudas Lilladher
Crompton Greaves Consumer Electricals Ltd (CROMPTON), a leading player in the Indian consumer electricals market, continues to demonstrate resilience and innovation in the industry. Prabhudas Lilladher has reaffirmed its ‘BUY’ rating on the stock, with a revised target price of Rs 441, down from Rs 504 earlier. The brokerage firm remains optimistic about the company’s growth trajectory, driven by cutting-edge technology innovations and robust financial performance.
Innovations Driving Growth
During its recent analyst meet, CROMPTON introduced NUCLEUS and XTECH, two revolutionary technology platforms set to redefine the fan industry in India:
- NUCLEUS Platform (BLDC Technology): Offers wide voltage fluctuation protection and enhances energy efficiency, making it an ideal choice for modern households.
- XTECH Platform (Induction Fan Technology): Provides high thermal resistance, ensuring long-lasting and reliable fan performance.
These innovations position CROMPTON as a technology leader in the electricals segment, reinforcing its dominance in the fans and residential pumps market. Additionally, the company has a strong presence in the mixer grinder category, further expanding its product portfolio.
Strategic Pricing and Market Positioning
With the implementation of BEE 2.0 regulations in January 2026, CROMPTON is proactively taking price hikes to offset cost pressures. This strategy ensures that margins remain stable while maintaining its competitive edge.
Prabhudas Lilladher anticipates a 13.3% revenue CAGR, 17.6% EBITDA CAGR, and 21.8% PAT CAGR over FY25-27E, reflecting strong financial health and growth potential.
Stock Valuation & Target Price
Despite the price revision, the brokerage maintains its confidence in CROMPTON’s long-term growth, as seen in its valuation:
- FY26 P/E Ratio: 31x
- FY27 P/E Ratio: 25x
- Revised Target Price: Rs 441 (down from Rs 504)
- Valuation Basis: 35x FY27E earnings (previously 40x)
With no changes in earnings estimates, Prabhudas Lilladher sees strong upside potential for investors in CROMPTON.
Financial Ratios (FY25-27E Projections)
| Metric | FY25E | FY26E | FY27E |
|---|---|---|---|
| Revenue Growth (CAGR) | 13.3% | – | – |
| EBITDA Growth (CAGR) | 17.6% | – | – |
| PAT Growth (CAGR) | 21.8% | – | – |
| P/E Ratio | – | 31x | 25x |
| Target Price (Rs) | – | – | 441 |
Investment Outlook
Crompton Greaves Consumer Electricals continues to be a market leader in fans, pumps, and small appliances, with a strong brand reputation and innovative product portfolio. With its recent technological advancements and strategic pricing actions, the company is well-positioned for sustainable growth.
For investors looking for long-term gains, CROMPTON remains a compelling buy, with potential upside as market demand for energy-efficient and high-performance electrical appliances continues to rise.
Conclusion
With a BUY recommendation and a target price of Rs 441, Prabhudas Lilladher sees Crompton Greaves Consumer Electricals as a solid investment option in the consumer electricals space. Investors should consider this stock for steady growth and strong future potential in the evolving Indian market.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.