The IIFL Securities Report: Buy Crompt Grea Con Elec - July 12

IIFL Securities has a buy rating on Crompton Greaves Consumer Electricals (Crompt Grea Con Elec) with a target price of Rs 484, implying an upside of over 10% from its current market price of Rs 436. The brokerage firm believes the company's strong brand and distribution network, coupled with its focus on innovation and product development, will drive its growth in the coming quarters. Additionally, the firm expects Crompt Grea Con Elec to benefit from the government's emphasis on infrastructure and urbanization in the country.

About Crompt Grea Con Elec:

Crompton Greaves Consumer Electricals Ltd. (CGCEL) is a leading Indian consumer electrical company, part of the Avantha Group. It offers a wide range of products including fans, lighting, pumps, home appliances, and air conditioners. CGCEL has a strong distribution network with over 100,000 retail outlets across India. The company has a number of manufacturing facilities located in India, China, and Indonesia. CGCEL is committed to providing high-quality products and services to its customers.

52 Week Price Trend:

Crompton Greaves Consumer Electricals Limited (Crompton) is currently trading at ₹436. Over the past 52 weeks, Crompton's share price has fluctuated between a high of ₹327.95 and a low of ₹251. The stock has been on a steady upward trend in recent months, with a gain of over 30% since early 2023. Analysts attribute this rise to positive quarterly results, favorable industry tailwinds, and the company's strong brand recognition. Crompton's recent acquisition of Butterfly Gandhimathi Appliances is also seen as a catalyst for future growth. Given the company's solid fundamentals and positive outlook, Crompton's stock appears to be a promising investment opportunity.

Stratzy's MOST Analysis:

CROMPTON has a MOST rating of BB-. This indicates that the company has Medium Fundamental Risks. This rating is based on the company's Management, Outlook, Safety and Trend. Under the MOST framework, Stratzy evaluates each of these four pillars and assigns a score. A lower score indicates higher risk and vice versa. CROMPTON's BB- rating suggests that the company has some areas of concern, but overall its fundamentals are relatively strong. Investors should take note of the company's specific strengths and weaknesses before making investment decisions.

Company's Fundamentals:

Crompt Greaves Con Elec (CROMP) is a consumer electrical equipment company listed on the National Stock Exchange (NSE). It has a stock PE ratio of 42.67, which means that the market is valuing its earnings at 42.67 times. The PB ratio of 6.75 indicates that the market is valuing its assets at 6.75 times their book value. Lastly, the dividend yield of 1.04% represents the annual dividend paid out as a percentage of the current stock price, providing investors with a steady stream of income.

Fundamental and Technical information provided in this blog were last updated on 12 Jul, 2024

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