Crompton Greaves shares: Brokerage sees 67% upside potential; check target price

Elara Capital retained its 'Buy' rating on Crompton Greaves Consumer Electricals Ltd with a target price of Rs 410, valuing the company at 32 times its estimated June 2028 price-to-earnings (P/E) multiple.

The brokerage said Crompton Greaves has outlined a three-pronged strategy focused on premiumisation, innovation and transformation to drive its next phase of growth. Management has reiterated its ambition to double revenue by FY31 while expanding EBITDA margin to more than 12 per cent.

Premiumisation will remain an important growth lever for the company. Crompton Greaves has launched the Rhion series as a distinct premium brand to address higher-end consumer segments and increase the contribution of premium products across categories.

On the innovation front, the company plans to launch differentiated products with smart features across categories. Management has set a target for smart products to contribute 20 per cent of revenue by FY31.

The transformation strategy includes revamping the go-to-market (GTM) architecture, sharpening its marketing strategy and improving operational efficiency.

Elara Capital said its constructive view is supported by Crompton Greaves' consumer franchise and market leadership, the improving trajectory of Butterfly, expansion into new segments and continued premiumisation.

The brokerage expects these factors to support the company's margin performance.

Shares of Crompton Greaves Consumer Electricals Ltd slipped 0.41 per cent to close at Rs 244.95 on Tuesday. At this level, Elara Capital's target price of Rs 410 implies an upside potential of 67.38 per cent for the stock.

Meanwhile, JM Financial has also kept its 'Buy' call on the counter with a 12-month target price of Rs 325.