Crompton Greaves Consumer (CROMPTON IN) Buy: Scaling new segments amidst market volatility

研报英文原文证据摘录

Crompton Greaves Consumer (CROMPTON IN) Buy: Scaling new segments amidst market volatility

ugh cost-control initiatives. (2) Margin outlook: Expected to remain

380.00

under pressure due to multiple headwinds. Management intends to pass through cost

increases to consumers and expects competitors to do similar. (3) Wire segment: The 290.00

company has begun selling products from its new wires business in two states and plans 200.00

05/25 11/25 05/26

to scale distribution rapidly nationwide. (4) Premiumisation strategy: New products and Target price: 360.00

brands have been launched, including ‘Crompton Armor’ (residential wires) and the High: 359.30 Low: 221.45 Current: 282.05

Source: LSEG IBES, HSBC estimates

super-premium ‘Crompton Rhion’ range. Management is focused on expanding premium

offerings across product lines and channels, supported by development at the company’s

Vishal Goel*, CFA

innovation centre. No financial disclosures were provided for this segment. (5) Solar Analyst, India EMS and Consumer Durables

business growth: The company has completed c5,000 rooftop solar projects for homes HSBC Securities and Capital Markets (India) Private Limited

vishalgoel@hsbc.co.in

and expects the portfolio to scale to an INR15-20bn business over the next 3-4 years. +91 0 80 6737 2115

Sandesh Shetty*

Maintain Buy, raise TP to INR360 (from INR350): Our earnings outlook is broadly Analyst, India Industrials

unchanged as we incorporate FY29 estimates into our forecasts. We value Butterfly now HSBC Securities and Capital Markets (India) Private Limited

sandesh1.shetty@hsbc.co.in

on its projected financials rather than historical acquisition value; both approaches imply a +91 89 8338 6423

valuation of INR30 per share. Our target price increases to INR360 (from INR350),