Crompton Greaves Consumer Electrical: Nomura maintains 'Buy', cuts target price to Rs 292
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Nomura maintained a 'Buy' rating on Crompton Greaves Consumer Electrical but cut its target price to Rs 292.
- ✓The brokerage adjusted its valuation to factor in higher commodity costs.
- ✓"We believe the current valuation at 17x FY29F EPS is attractive," Nomura said.
Story at a Glance
- Category
- BUSINESS
- Reported By
- MoneyControl
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
Nomura has maintained its 'Buy' rating on Crompton Greaves Consumer Electrical but lowered its target price to Rs 292 from the earlier level, cutting its target price-to-earnings multiple to 25 times from 28 times to factor in near-term earnings risks from higher commodity costs. "Crompton's 2QFY27 consolidated revenue at Rs 22.6 billion (+18% y-y) was 4%/5% above our/consensus estimates. EBITDA margin came in at 9% (Nomura/consensus estimates: 8.9%), leading to EBITDA of Rs 2 billion, +24% y-y.
Thus, APAT was up 28% y-y," the brokerage said in its latest report. Electrical Consumer Durables (ECD) revenue grew 19% year-on-year, against Nomura's estimate of 14%, while EBIT margin at 11.6% was below its estimate of 12.5%. Lighting revenue rose 14%, with EBIT margin at 12.9%, against the brokerage's estimate of 11.5%. Butterfly reported 17% revenue growth and a 7.4% EBIT margin, against Nomura's estimate of 5.5%.
Unlock the Full Story with ArthNow Premium
To continue reading this complete financial story and in-depth market context, upgrade to ArthNow Premium. Enjoy unlimited access across Web and Mobile.
MoneyControl
Read the full, original unfiltered story directly on the publisher's portal.