Crompton Greaves Consumer Electricals witnessed a remarkable 15 percent surge in its shares during early trading on May 17, following a substantial 56 percent sequential increase in consolidated net profit for the FMEG player.
Despite a modest one percent year-on-year rise in consolidated profit to Rs 133 crore for the quarter ended March, Crompton Greaves experienced a significant 56 percent surge in profit on a sequential basis.
Revenue also saw a notable uptick, standing at Rs 1,961 crore, marking a nine percent increase year-on-year from Rs 1,791 crore in the corresponding quarter of the previous year.
By 10:10 am, the stock of Crompton Greaves was trading at Rs 384.9 on the NSE, representing a remarkable 13.5 percent increase.
The company initiated Crompton 2.0 in June 2023 and has been reaping its benefits ever since. With numerous product launches, increased advertisement spending, focus on innovation, and enhanced go-to-market strategies, Crompton has witnessed notable growth.
Analysts at Nuvama Institutional Equities noted, “With the Butterfly segment expected to stabilize over the next few quarters, the growth outlook appears promising.” They emphasized that Crompton has consistently delivered healthy performances and outpaced industry growth by focusing on product enhancements and diversification.
Kotak Institutional Equities also expressed optimism, stating, “Crompton’s 4QFY24 results featured better-than-expected margins from the ECD segment amid seasonal strength, but a large loss at Butterfly including one-time impacts. The near-term outlook is positive as summer demand remains robust.”
Both brokerage firms have revised their target prices, with Nuvama increasing it to Rs 393 and Kotak to Rs 350, while maintaining their buy and add calls, respectively.
Over the past year, Crompton Greaves Consumer Electricals shares have demonstrated impressive growth, rising approximately 50 percent, surpassing the benchmark Nifty 50 index’s 23 percent increase.
Disclaimer: The views and investment suggestions provided by investment experts on LegalParivar.com are their own and not necessarily endorsed by the website or its management. Users are advised to consult certified experts before making any investment decisions.
