Buy Crompt Grea Con Elec: IIFL Securities's Target Price Rs 346

IIFL Securities has issued a buy recommendation for Crompton Greaves Consumer Electricals, with a target price of Rs 346, implying a potential upside of approximately 4% from its current market price of Rs 333.1. The brokerage firm believes that Crompton Greaves' strong brand presence, focus on innovation, and cost optimization efforts will drive its growth in the consumer durables market.

About Crompt Grea Con Elec:

Crompton Greaves Consumer Electricals Ltd. (CGCEL), a subsidiary of the Avantha Group, is a leading consumer electrical company in India. It manufactures, markets, and distributes a wide range of consumer appliances, including fans, lighting products, pumps, and kitchen appliances. CGCEL has a strong brand portfolio, which includes iconic brands such as Crompton, Greaves, and Kenstar. The company has a pan-India distribution network, with a presence in over 90,000 retail outlets. CGCEL is committed to providing innovative and energy-efficient products, and has a strong focus on research and development.

52 Week Price Trend:

Crompton Greaves Consumer Electricals (CROMPTON) has witnessed a modest increase in stock price, currently trading at Rs 333.1, hovering within the range of its 52-week high of Rs 327.95. The stock's performance has been influenced by positive market sentiment and strong fundamentals. Despite economic headwinds, CROMPTON has maintained a stable financial position, supported by its diversified product portfolio, efficient operations, and strong brand presence. Investors remain optimistic about the company's growth prospects, as the demand for electrical appliances and consumer durables is expected to rise in the long term.

Stratzy's MOST Analysis:

CROMPTON received a BB- rating from Stratzy's MOST framework, indicating medium fundamental risks. This assessment is based on the company's management, outlook, safety, and trend. Management and outlook have a moderate rating, suggesting the company has a sound management team and a generally positive outlook. Safety and trend ratings are slightly lower, indicating potential concerns regarding financial stability and market performance. Overall, the BB- rating suggests that CROMPTON is a company with moderate fundamental risks that investors should consider carefully before investing.

Company's Fundamentals:

Crompton Greaves Consumer Electrical (CROMPTON) is a publicly traded company on the National Stock Exchange of India (NSE). Its stock performance is often analyzed using key financial ratios. The Stock PE (Price-to-Earnings) ratio of 42.67 indicates that investors are willing to pay 42.67 times the company's annual earnings per share for its stock. The PB (Price-to-Book) ratio of 6.75 implies that the market value of the company's assets is 6.75 times its book value. Finally, the Dividend Yield of 1.04% represents the annual dividend payout as a percentage of the current stock price, indicating the income investors can potentially earn from dividends.

Fundamental and Technical information provided in this blog were last updated on 08 May, 2024

Disclaimer: The information and recommendations presented in this section, including any attached reports, are sourced from third-party providers through diverse channels. The views and opinions expressed within these materials belong solely to their respective creators. These views and opinions do not necessarily reflect the position of Stratzy Fintech Pvt Ltd. Stratzy explicitly disclaims any guarantees, express or implied, regarding the accuracy and reliability of the provided content. We strongly advise consulting with a licensed financial advisor before making any investment decisions based on this information. Remember, seeking independent financial advice is crucial.