Crompton Greaves shares rise 6% as Motilal Oswal expects significant upside

Shares of Crompton Greaves Consumer Electricals rose 6% on Thursday after domestic brokerage Motilal Oswal, initiated coverage with a 'buy' rating and a target of Rs 350 per share. Crompton Greaves Consumer shares gained 5.85% to Rs  263.30 in the current session against the previous close of Rs 249.30. 

Crompton Greaves share has lost 33.58% in one year but lost 30% since the beginning of this year. Total 6.85 lakh shares of the firm changed hands amounting to a turnover of Rs  18.10 crore.

Market cap of the firm rose to Rs 16,931 crore.

The stock trades higher than 5 day, 10 day, 20 day  moving averages but lower than 30 day, 50 day, 100 day and 200 day moving averages.

The large cap stock hit a 52 week high of Rs 401.50 on December 30, 2024 and a 52-week low of Rs 248.15 on December 17, 2025. 

The company's acquisition of an additional 55% stake in Butterfly Gandhimathi Appliances in March 2022 took its holding to 75%, enhancing its product portfolio and market reach. The company anticipates realising various revenue and cost synergies in the short to medium term and plans to leverage mutual strengths to expand its industry share and market reach.

According to Motilal Oswal, the company is well positioned to benefit from increased investment in advertising and brand-building. "We believe that higher investments in advertisement and promotional spending, along with its efforts to improve the brand strength and product portfolio, will bolster the future growth trajectory," Motilal Oswal said in its note.

The brokerage estimates Crompton Greaves will deliver a CAGR in revenue of 8% over FY26-28, including 8% in electrical consumer durables, 6% in lighting, and 10% in Butterfly Gandhimathi Appliances. It expects gross margin improvement led by pricing strategy, premiumisation, and cost efficiencies, with operating profit margin rising from 9.7% in FY26 to 11.2% in FY28.

Motilal Oswal projects EBITDA and PAT CAGR of 17% and 21%, respectively, for FY26-28. The coverage comes amid heightened industry competition and uncertain demand, with Motilal Oswal cautioning, "The key downside risks for the stock are high competitive intensity and a possible dip in demand due to the economic slowdown."

In its bull case, Motilal Oswal placed a price target of ₹460, representing a 77% upside from current levels. 

The company's 'Crompton 2.0' strategy has focused on investment in people, processes, and product innovation. Margin recovery in the ECD segment is expected in the second half of the financial year, with revenue, EBITDA, and PAT CAGR anticipated at 9%, 20%, and 25%, respectively, from FY26-28.