The IIFL Securities Report: Buy Crompt Grea Con Elec - June 10

IIFL Securities recommends buying Crompton Greaves Consumer Electricals at the current market price of Rs 412.7. The brokerage firm has set a target price of Rs 430 for the stock, indicating a potential upside of around 4.2%. This recommendation is based on the company's strong fundamentals and positive outlook. Crompton Greaves Consumer Electricals is a leading player in the consumer durables industry with a strong brand presence and a wide distribution network. The company has been consistently growing its market share and is expected to benefit from the rising demand for consumer durables in India.

About Crompt Grea Con Elec:

Crompton Greaves Consumer Electricals Limited (CGCE) is an Indian electrical equipment manufacturing company. It is a part of the Avantha Group. CGCE manufactures and markets a wide range of consumer electrical products such as fans, lamps, inverters, pumps, and geysers. The company has a strong presence in India and also exports its products to over 45 countries. CGCE is known for its innovative products and strong brand recognition. It has been consistently recognized as one of the leading electrical equipment manufacturers in India.

52 Week Price Trend:

Crompton Greaves Consumer Electricals (CROMPTON), with a current market price (CMP) of Rs 412.7, has seen significant growth from its 52-week low of Rs 251. However, it remains below its 52-week high of Rs 327.95. This indicates that the stock has potential for further upside but may also face resistance as it approaches its previous highs. Investors should monitor the company's fundamentals, market conditions, and technical indicators to make informed decisions regarding investing in CROMPTON.

Stratzy's MOST Analysis:

CROMPTON has been rated BB- by Stratzy's MOST framework, indicating a medium fundamental risk. This rating is based on an assessment of the company's management, outlook, safety, and trend. The BB- rating suggests that CROMPTON has some weaknesses in these areas but is generally in a stable position. Investors should be aware of these potential risks before investing in CROMPTON.

Company's Fundamentals:

Crompt Greaves (CROMPTON) is a prominent electrical equipment manufacturer listed on the National Stock Exchange (NSE) of India. Its stock currently trades at a Price-to-Earnings (PE) ratio of 42.67, indicating that investors are willing to pay 42.67 times the company's annual earnings per share to acquire its stock. The Price-to-Book (PB) ratio of 6.75 suggests that the company's market value is 6.75 times the value of its assets as recorded in its financial statements. Crompton offers a Dividend Yield of 1.04%, implying that investors receive ₹1.04 in dividend income for every ₹100 invested in the company's shares. These metrics provide insights into CROMPTON's valuation and income-generating capacity, which can be useful considerations for potential investors.

Fundamental and Technical information provided in this blog were last updated on 08 Jun, 2024

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