Crompton Greaves Consumer Electricals, a prominent player in the Fast-Moving Electrical Goods (FMEG) sector, experienced a significant surge in its shares, skyrocketing by 15 percent in early trade on May 17. This impressive uptick came on the heels of the company’s report of a remarkable 56 percent sequential jump in its consolidated net profit.
The FMEG giant reported a one percent year-on-year increase in consolidated profit for the quarter ended March, amounting to Rs 133 crore. However, the standout performance was observed in the sequential comparison, with profits surging by an impressive 56 percent.
Revenue figures also exhibited a commendable growth trajectory, with consolidated revenue reaching Rs 1,961 crore, marking a notable nine percent year-on-year increase from Rs 1,791 crore in the corresponding quarter of the previous year.
At 10:10 am, Crompton Greaves stock was quoting at Rs 384.9 on the NSE, reflecting a substantial increase of 13.5 percent.
The company’s strategic initiatives, including the implementation of ‘Crompton 2.0’ since June 2023, have been instrumental in driving growth. With a focus on product innovation, enhanced advertisement spends, and improved go-to-market strategies, Crompton has been able to capitalize on market opportunities and deliver robust performance across product categories.
Analysts from Nuvama Institutional Equities expressed optimism regarding Crompton’s future growth prospects, particularly with the stabilization expected in the Butterfly segment over the coming quarters. The brokerage highlighted Crompton’s consistent performance and its ability to outpace industry growth rates, underlining the company’s resilience and market leadership.
Kotak Institutional Equities also weighed in on Crompton’s positive outlook, citing better-than-expected margins in the Electrical Consumer Durables (ECD) segment and robust summer demand. The brokerage maintained its add call on the stock while revising its target price upwards.
In light of the impressive performance and promising growth prospects, investment experts from Business Headline highlighted bullish sentiments towards Crompton Greaves Consumer Electricals. Nuvama maintained its buy rating and raised the target price on the company from Rs 365 to Rs 393, implying a significant upside potential of 16 percent. Similarly, Kotak raised its target price on the player to Rs 350, further reinforcing positive sentiment towards the stock.
Over the past year, Crompton Greaves Consumer Electricals shares have delivered substantial returns, gaining around 50 percent, outpacing the benchmark Nifty 50 index, which recorded a 23 percent rise during the same period.
As investors continue to monitor Crompton’s performance and growth trajectory, the stock remains a focal point of interest in the dynamic landscape of the FMEG sector, with its strategic initiatives and robust financial performance positioning it as a key player in the industry.
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