Crompton Greaves Consumer Electricals: On a Firm Footing; Jefferies reiterates buy with Rs 490 price target
Crompton Greaves posted strong growth in Q3 FY21 ( PBT +42% YoY) and op-margin at 14.8% (+200bps), with market share gains in Fans (+1%) & Appliances. Crompton Greaves hiked prices by 5-8% from Jan'21 (rising input costs). Traction in emerging channels (+88% in Rural; +53% in E-Comm), new launches, premiumization (premium fans +51%YoY), cost control and robust B/S (net cash Rs 8 bn) support growth.
Crompton Greaves Standalone revenue/PBT posting +24%/+42%YoY beating estimates. Crompton Greaves growth was driven by ECD (+32%), while Lighting was weak (+1%), mostly volume-led: Image taken from companys website