Citi, Jefferies retain Buy on Crompton as premiumisation and new bets drive growth outlook
Citi and Jefferies retained Buy ratings on Crompton Greaves Consumer Electricals, flagging premium fans, price-led growth, solar rooftop, wires and a Butterfly turnaround. Crompton is targeting 15% revenue CAGR in FY26-FY31, with new businesses contributing 20% of FY31 revenue.
What happened
Crompton Greaves Consumer Electricals · Jefferies and Citi retained Buy ratings on Crompton Consumer, citing premiumisation, price hikes, solar rooftop and
Key facts
- Jefferies target price: Rs 330
- Citi target price: Rs 400
- Crompton targets 2x sales over five years
- Crompton operating-margin target: 11-12%
- Premium fans mix: 25%
- Average price hikes in lead categories: 14% in one year
- Estimated FY26-29 EPS CAGR: over 18%
- Crompton revenue target CAGR: 15% for FY26-31
- New businesses expected to contribute 20% of FY31 revenue
Why this matters
Crompton’s push into solar rooftop, wires and a Butterfly turnaround highlights a strategy of using adjacencies and portfolio integration to reduce reliance on core appliances.
What to watch
- Quarterly volume growth versus price-led growth in fans, pumps, appliances and lighting.
- Premium-product mix, average selling price growth and gross-margin movement.
- Revenue growth and profitability disclosures for solar rooftop, wires and Butterfly.
- Evidence that new businesses are progressing toward 20% of FY31 revenue.
- Summer temperatures, monsoon conditions, housing activity and festive-season demand.
- Copper, aluminium, steel and freight-cost movements, and Crompton’s ability to pass them through.
- Competitive pricing actions from Havells, Bajaj Electricals, Orient Electric, V-Guard and unorganised players.
- Dealer additions, e-commerce penetration, working-capital trends and inventory levels.
- Increase premium-fan launches, model refreshes and retail merchandising to raise mix and realization.
- Deploy capital and channel partnerships into rooftop solar and wires, seeking cross-selling through existing electrical distribution.
- Accelerate Butterfly turnaround through product rationalisation, supply-chain efficiencies and expanded distribution.
- Use targeted promotions and financing offers during summer and festive demand periods while protecting premium-category pricing.
- Brokerages and investors will increasingly assess progress through category-level growth, premium mix, new-business revenue and margin trajectory rather than headline revenue alone.