Crompton Greaves Consumer Electricals share price: Dolat Capital maintains accumulate on CG Consumer Electricals, target price Rs 300

Dolat Capital has maintained its accumulate rating on CG Consumer Electricals in the long term with a target price of Rs 300. The stock gained 3.62% to Rs 267.55 on Thursday while the BSE Sensex closed 284.84 points down (-0.69%) at 40,913.82.

Company Financials

For the quarter ended 31-12-2019, the company has reported consolidated sales of Rs 1071.29 crore, down -.42 % from last quarter Sales of Rs 1075.79 crore and up 3.98 % from last year same quarter sales of Rs 1030.31 crore. The company has reported net profit after tax of Rs 160.97 crore in the latest quarter.

The company’s top management includes Mr.D Sundaram, Mr.H M Nerurkar, Mr.P M Murty, Mr.Promeet Ghosh, Mr.Sahil Dalal, Mr.Shantanu Khosla, Ms.Shweta Jalan, Ms.Smita Anand. Company has Sharp & Tannan as its auditors. As on 31-12-2019, the company has a total of 627,227,072 shares outstanding.

Investment Rationale

The company continued to gain market share in its core category, fans, and doubled its market share in geysers and air coolers in Q3FY20. In Q4FY20, so far, it has not seen any major correction in the lighting segment, and if this sustains, the company may experience value growth as well, said the brokerage.