Buy Crompton Greaves Consumer Electricals, target price Rs 265: IIFL

IIFL has a buy rating on Crompton Greaves Consumer Electricals with a target price of Rs 265. Shares of Crompton Greaves Consumer ended down 1.4 per cent at Rs 192.7 on Friday while BSE Sensex closed 131.18 points down (-0.44 per cent) at 29,815.59.

Crompton Greaves Consumer Electricals Ltd., incorporated in 2015, has a market cap of Rs 12087.76 crore.

Investment Rationale

Crompton management does not perceive major changes in the consumption pattern and expects business to post a vertical startup within two weeks, once the situation normalises, provided the Covid-19 lockdown lasts for a month, said IIFL. While the health & safety of stakeholders has been a priority, a strong cash position, sound business model and sturdy brand franchise should aid a faster recovery, said IIFL.

Financials


For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 1071.29 crore, down -.42 per cent from last quarter sales of Rs 1075.79 crore and up 3.98 per cent from last year same quarter sales of Rs 1030.31 crore. The company reported net profit after tax of Rs 160.97 crore in the latest quarter.