Feb'25 View on Crompton Greaves Consumer Electricals Ltd

Crompton Greaves Consumer Electricals Limited is one of the leading consumer companies in India with a 75+ years old brand legacy. It is an independent company under professional management and have 2 business segments – Lighting and Electrical Consumer Durables. We market our products under the “Crompton” brand name in India and select export markets. After making high above 500 the stock corrected to 250 level and bounced from there and now lying at 332 and looks to cross 400 level very soon on back of following positive inputs • Pumps: 19% growth in pumps, driven by strong execution of solar pump orders. • Robust growth in air coolers and small domestic appliances in Q3FY25. • ECD margins expanded 160 bps yoy to 15.2% (our estimate: 14%). • Q3FY25: Topline growth largely on expected lines; EBITDA slightly ahead. • Crompton has delivered the highest ECD EBIT growth among listed players in CY24. • Plans to unveil next-generation platform in fans; robust outlook for solar pumps. • Butterfly’s turnaround is on track, business is poised to deliver growth going forward. • We expect earnings per share (EPS) to grow by 26.5% in FY26E & 21.6% in FY27E.