Crompton Greaves Consumer Electricals saw its shares fall over 3% despite posting double-digit revenue and profit growth in the June quarter, as investors focus on near-term supply constraints. Analysts remain optimistic about the company’s medium-term outlook amid supply chain challenges.
Crompton Greaves Consumer Electricals fell more than 3% on the stock market even after the company posted double-digit growth in revenue and profit for the June quarter, underscoring how investors focused less on the headline numbers and more on near-term supply issues. The shares dropped 3.28% to ₹261.15 after the results, even as Jefferies and Citi reiterated their buy ratings on the stock.
The consumer electricals maker reported consolidated net profit of ₹140 crore for the quarter, up 14.8% from a year earlier, while revenue climbed 16.9% to ₹2,335 crore. EBITDA rose 65.7% to ₹325 crore and the operating margin improved to 13.9% from 9.8% a year ago, helped by price increases and tighter cost control, according to the broker notes.
Jefferies kept its target price at ₹330, implying about 26% upside from the latest share price, and said the quarter was broadly in line with expectations. The brokerage said Crompton had passed on around 80% of inflation-driven cost pressure through price increases, while also benefiting from lean working capital management and cost discipline.
Citi was more upbeat on the medium-term outlook, holding its target at ₹400, or about 53% above the stock’s last close, but said supply constraints had obscured the company’s underlying growth in the quarter. It expects a recovery in sales lost during the period, a favourable comparison base and growth in newer categories to support performance, though it flagged execution, raw-material volatility and supply-chain conditions as key risks.
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