Prabhudas Lilladher is bullish on Crompton Greaves Consumer Electricals has recommended buy rating on the stock with a target price of Rs 297 in its research report dated February 20, 2018.
Prabhudas Lilladher 's report on Crompton Greaves Consumer Electricals
We met the management of Crompton Greaves Consumer Electrical (Crompton) and came back convinced about the medium/long term opportunities for growth and management's strategy/focus to capitalize on the opportunities. Key focus areas for the management from here includes a) Continued growth in core categories led by innovation b) ramp up in Geyser/Cooler segment to be top 2/3 players in the segment over next few years. c) Implementation of the Go-to-Market programme successfully d) building adjacencies in terms of product category (aligned with goal of profitable growth and not just add top line) e) geographical expansion in markets like Africa/Middle East (meaningful presence in these markets in few categories).
Outlook
We expect the growth to revive in near term as new launches in fans/pumps segment start showing results along with sustained growth in lighting. We also expect sales to grow at a CAGR of 12% and earnings CAGR at 19% over FY17-20E. We maintain "BUY" with a TP of Rs297.For all recommendations report, click here
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