Crompton Greaves Consumer Electrical’s share price surged nearly 6% to an intra-day high of Rs 346.40 on the National Stock Exchange. The surge in the stock price came after the company’s net profit grew 23% year-on-year to Rs 169.5 crore for Q4 FY25, compared with Rs 138.4 crore in Q4 FY24.
Its revenue from operations rose 5.1% YoY to Rs 2,060.6 crore, as against Rs 1,961 crore in the same quarter a year ago. The company’s electrical consumer durables segment reported a growth of 11% YoY in the full year FY25, supported by growth in pumps and appliances.
Nuvama on Crompton Consumer: Solar rooftop foray key driver
According to the brokerage firm, Nuvama Institutional Equities, the company’s revenue growth was broadly in line, while margins surprised positively at both the gross and EBIT level. It believes that the company’s performance was reasonable despite tough macros. It maintained a ‘Buy’ call on the stock with an unchanged target price of Rs 460.
Sluggish fans’ growth was offset by healthy growth in small appliances. The company announced its entry into solar rooftop (which is a total addressable market of Rs 20,000 crore; 20–22% of the existing total addressable market) and believes it will be a long-term opportunity and margin accretive, said Nuvama in its report. Moreover, it is exploring a greenfield facility (Rs 350 crore capex over the next two–three years) to manufacture fans (in phase-1) and other categories later. “We maintain FY26/27 earnings per share (EPS) estimates and believe these steps are in the right direction,” said Nuvama.
Nomura on Crompton Greaves: Maintains ‘Buy’ rating
Crompton’s new launches in fans offer a strong value proposition and can drive a recovery. However, the global brokerage Nomura trimmed electrical consumer durables’ FY26 revenue growth estimates to 10%. The FY27 revenue is expected to grow 13%. This earnings projection is also expected to factor in the weak summer season. The broker maintained its ‘Buy’ rating on the stock with a slight cut in target price to Rs 444 from Rs 447.
Nomura expects that Crompton has delivered EBIT growth ahead of its peers in FY25, which is a positive. However, it cut EPS estimates by 2-3%. Apart from Nuvama, Nomura didn’t factor in the company’s foray into solar rooftop, but finds it as a good execution in newer categories, with an upside.
Crompton Greaves’ share performance
The share price of Crompton Greaves has risen 5.6% in the last five trading sessions. The stock has given a return of 3.6% in the past one month. However, it has fallen 9.55% in the previous six months. The stock has surged by 2.5% in the previous one year.