Buy Crompton Greaves, target price Rs 515: Motilal Oswal

Motilal Oswal has buy call on Crompton Greaves with a target price of Rs 515. The current market price of Crompton Greaves Consumer Electricals is Rs 454.7. Time period given by analyst is one year when Crompton Greaves Consumer Electricals price can reach defined target.

Crompton Greaves Consumer Electricals Ltd., incorporated in the year 2015, is a Mid Cap company (having a market cap of Rs 28556.82 Crore) operating in Consumer Durables sector.

Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 1542.65 Crore, up 12.76 % from last quarter Total Income of Rs 1368.06 Crore and up 48.57 % from last year same quarter Total Income of Rs 1038.30 Crore. Company reported net profit after tax of Rs 249.08 Crore in latest quarter.

Investment Rationale
CROMPTON has consolidated its position in Fans and Pumps, and has scaled up to the number two position in the Water Heaters segment. The two-year revenue CAGR stood at 12% in 4QFY21 (v/s 10% for HAVL), indicating strong performance. With its strong distribution network, the brokerage expects CROMPTON to capitalize on any pent-up demand emerging post the lifting of lockdown restrictions. It maintains Buy, with TP of INR515 per share (45x FY23E EPS.

Promoter/FII Holdings
Promoters held 11.4 per cent stake in the company , FIIs held 39.2 per cent, DIIs 38.7 per cent and public and others 10.8 per cent.