Four Directors at Crompton Greaves Consumer Elec Ltd sold/sold after exercising options 647,363 shares at between 414.579INR and 420.000INR. The significance rating of the trade was 83/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discreti...
CRMPTN.GREAVES CSM.ELEC (IN), a company active in the Consumer Electronics industry, now shows a lower overall rating. The independent financial analyst theScreener confirms the fundamental rating of 2 out of 4 stars. However, the market behaviour deterioration triggered a risk requalification, which can be thus described as moderately risky. theScreener believes that increased risk justifies the general evaluation downgrade to Neutral. As of the analysis date March 4, 2022, the closing price wa...
CROMPTON GR. CON: In line revenue, margin-led earnings surprise (CROMPTON IN, Mkt Cap USD3.8b, CMP INR451, TP INR505, 12% Upside, Buy) Sacrifices revenue growth for the sake of margin Revenue stood in line with our estimate. Two-year revenue CAGR stood at 14%, driven by the ECD segment (+18%). Cost rationalization, favorable mix, and pricing action mitigated the impact of commodity cost inflation QoQ, which led to EBITDA coming in higher than our estimate, despite higher YoY employee c...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
CROMPTON GREAVES CONSUMER ELECTRICALS | ANNUAL REPORT: Strong FCF with robust balance sheet (CROMPTON IN, Mkt Cap USD3.8b, CMP INR455, TP INR515, 13% Upside, Buy) Crompton’s FY21 Annual Report focuses on the five-dimensional growth strategy adopted over the pandemic-affected year. Launching new products and deepening the reach within existing product categories were among the key focus areas for the year gone by. Here are the key highlights: Push for cost savings program intact: Under Pr...
Q3FY20 standalone result highlights PAT grew 30% yoy to Rs1.04bn: Revenues +4% yoy to Rs10.7bn, OPM +50bp to 12.8% and EBITDA +8.6% yoy to Rs1.37bn. Reported PAT grew 102% yoy at Rs1.61bn led by Rs574mn tax write back of earlier years. Stable ECD performance, market share gains: ECD saw +11% yoy revenue growth to Rs7.9bn led by continued efforts on innovation and premium products across categories. Fans saw 8% yoy volume growth with 80bps mkt share gain to 27%, domestic pumps volume grew 8% ...
Crompton Gr. Con: Market share gains evident across categories (CROMPTON IN, Mkt Cap USD2.3b, CMP INR268, TP INR305, 14% Upside, Buy) ECD segment registers strong growth defying any economic slowdown Crompton demonstrated strong show in the ECD segment with market share gains across key categories. Management is optimistic on growth outlook and hasn’t witnessed any meaningful slowdown in its core categories. Channel stocking in fans segment for upcoming summer season is key. We mainta...
THE CORNER OFFICE (Crompton Greaves Consumer Electricals) — Focus on new product launches and higher ad-spends; Evaluating inorganic opportunities in select categories with aim to be market leader Mr. Shantanu Khosla, Managing Director Prior to joining CROMPTON in Aug’15, Mr. Khosla was with P&G, where he spent 30 years. He was CEO & MD of P&G India for 13 years. Under his leadership, P&G India’s revenue increased 15-fold to USD1.8b, making it one of the fastest growing consumer companies i...
We met Crompton Consumer’s (CGCEL) management. Below are key takeaways: ECD demand impacted in Aug-19: due to floods and intense rain in certain states. While there is no slowdown, management would closely monitor demand. CGCEL’s focus on premium segment with new product launches such as Anti-dust, Aura Fluidics, etc (>Rs1600/unit; including decorative), has aided ahead of industry growth and market share gains for the company over last 3-4 years (~3% gain to achieve 25-26% market share). Pum...
Q1FY20 standalone result highlights Adj. PAT +18% yoy to Rs1.23bn: led by strong ECD performance, partially offset by weak lighting business. Revenues +12% yoy to Rs13.47bn, OPM +40bps to 14.3% and EBITDA +14.8% yoy to Rs1.92bn. Strong ECD performance: with +16% yoy revenue growth to Rs10.7bn led by a strong summer season, continued efforts on innovation and premiumization across categories. Fans (premium +24% yoy; 1% mkt share) and pumps grew ~15% yoy (sustained traction in Crest Mini), wat...
CROMPTON GR. CON: Weak lighting segment performance impacts results (CROMPTON IN, Mkt Cap USD2.1b, CMP INR226, TP INR270, 19% Upside, Buy) Earnings miss estimates marginally: 1QFY20 revenue grew 12% YoY to INR13.5b (in line with our est. of INR13.7b), while EBITDA was up 15% YoY to INR1.9b (5% below our est. of INR2b). Reported EBITDA margin improved 30bp YoY to 14.2% (lower than our est. of 14.7%), while other income came in higher than our expectation at INR173m. Thus, adj. PAT at INR1....
Q4FY19 standalone result highlights Adj. PAT +10% yoy to Rs1.13bn: as weak revenue growth was offset by higher than expected other income. Revenues +7% yoy to Rs12.1bn, EBITDA margins -60bps to 14% and EBITDA +2.5% yoy to Rs1.69bn. Lighting margins rebound: Revenues muted at 1% yoy to Rs3.24bn as strong volumes and EESL revenues (+18% yoy to Rs470m) were offset by price erosion and sustained decline in CFL. LED revenues grew 11% yoy (+25% volumes; 85% share vs 80% in 3Q19). Margins rebounded...
Crompton Gr. Con: A ‘run-of-the-mill’ quarter; ECD margins to improve (CROMPTON IN, Mkt Cap USD2b, CMP INR219, TP INR270, 23% Upside, Buy) Earnings in-line: 4QFY19 revenue grew 7% YoY to INR12b, while EBITDA was up 2.5% YoY to 1.7b. Reported EBITDA margin declined 60bp YoY to 14%, but adjusting for ESOP charges, EBITDA margin contracted 130bp YoY to 14.6%. Other income was higher than expectation at INR172m. Thus, adj. PAT came in at INR1.13b, in line with our expectation. For FY19, reven...
Q3FY19 standalone result highlights PAT +14.6% yoy to Rs797mn: as weak revenue growth was offset by higher than expected margins. Revenues +9.8% yoy to Rs10.3bn, EBITDA margins -20bps to 12.2% and EBITDA +8.2% yoy to Rs1.26bn. Lighting margins rebound qoq: to 8.8% (+250bps qoq), while remaining weak on yoy basis (-502bps; price erosion) led by design optimisation, sourcing efficiency, increased in-house manufacturing, increase in premium products, etc. Accordingly, it expects margins to impr...
Crompton Gr. Con: In-line performance supported by healthy ECD sales (CROMPTON IN, Mkt Cap USD1.9b, CMP INR220, TP INR270, 23% Upside, Buy) Operating performance in line with estimates: CROMPTON reported strong 3QFY19 sales at INR10.3b (up 10% YoY), in line with our estimate of INR10.2b, on healthy performance of the Electric Consumer Durables (ECD) segment (INR7.1b, +16% YoY). But, its Lighting segment disappointed, declining 2.4% YoY to INR3.2b. EBITDA grew 8% YoY to INR1.3b supported b...
Q2FY19 standalone result highlights PAT +9% yoy to Rs769mn: as strong ECD performance was offset by weak lighting segment. Revenues +8% yoy to Rs10.4bn and EBITDA margins -60bps to 11.9% and EBITDA +3% yoy to Rs1.24bn. Lighting pains: with 4% revenue decline and 630bps yoy margin drop to 6.3%. Ex-EESL, revenue growth was 14% led by sustained growth in LEDs. However, intense competition across categories (battens, panels, fixtures, street lighting, etc) and rupee depreciation has driven sharp...
CROMPTON GR. CON: Lighting margin to rebound over next 2 quarters (CROMPTON IN, Mkt Cap USD1.7b, CMP INR197, TP INR260, 32% Upside, Buy) Below estimate operating performance: Sales grew 8% YoY to INR10b, below our estimate of INR11b due to weak performance in the Lighting segment (-4% YoY), whereas Electrical Consumer Durables segment continues to deliver in-line growth (+15% YoY). EBITDA registered marginal growth of 3% YoY to INR1.2b. Margin compressed 70bp YoY to 11.9% on weak margins ...
Crompton Gr. Con: New product launches to drive growth; Lighting segment to see margin pressure given increased competitive pricing (CROMPTON IN, Mkt Cap USD2.2b, CMP INR249, TP INR305, 22% Upside, Buy) We recently attended an analyst meet of Crompton Greaves. We highlight below the key takeaways from our meeting. Price hikes taken in the Fans category to mitigate cost pressures To mitigate the cost pressure on account of rise in key raw material prices (copper), Crompton went in for p...
Crompton Gr. Con | FY18 Annual Report Update: Five-pillar strategy to drive structural growth; Free cash flow generation remains strong (CROMPTON IN, Mkt Cap USD2.4b, CMP INR261, TP INR305, 17% Upside, Buy) We went through the FY18 annual report of Crompton Greaves Consumer Electricals Limited (CROMPTON) to get updates on and insights into its: (a) five- pillar strategy for growth, (b) increasing share of premium category products through new product launches, and (c) cash flow generation, ...
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