Crompton Greaves CE - Q1 FY22 Result Report - YES Securities

(Rating: BUY, TP: Rs578, Upside: 23.6%)

- ECD and B2C lighting saw broad based growth across all product categories; while B2B and B2G lighting continue to face slow order pick up by Govt. Institutions. Gross margin contracted on yoy basis, however sequentially it has improved despite adverse commodity prices.

- ECD continues with its strong growth momentum registering 48% yoy growth. Strong performance was aided by favourable base, 63% growth in Fans driven by premium and decorative Fans and exponential growth in Appliances.

- Crompton continues to gain market share in Fans (+1%) to 27%. E-commerce and modern retail continue to grow exponentially delivering 149% yoy growth. Rural channel grew 195% yoy given increase in reach.

- We build in FY21-24E Revenue/EBITDA/PAT CAGR of 13%/13%/9% and roll forward valuations to FY24E to arrive at our PT of Rs578 valuing the company at 45x FY24EPS, a 20% discount to our target multiple on Havells and maintain our BUY rating

Shares of Crompton Greaves Consumer Electricals Ltd was last trading in BSE at Rs. 471.6 as compared to the previous close of Rs. 467.75. The total number of shares traded during the day was 23994 in over 1199 trades.

The stock hit an intraday high of Rs. 474.9 and intraday low of 467.75. The net turnover during the day was Rs. 11311388.

Source : Equity Bulls

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