Crompton Greaves Consumer Electricals (CROP.BO): Management Meeting Takeaways from Citi India Consumption Tour

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Crompton Greaves Consumer Electricals (CROP.BO): Management Meeting Takeaways from Citi India Consumption Tour

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16 Jun 2026 15:17:43 ET │ 12 pages

Crompton Greaves Consumer Electricals

(CROP.BO)

Management Meeting Takeaways from Citi India Consumption Tour

Buy CITI’S TAKE

Price (16 Jun 26 15:30) Rs264.95 We hosted Crompton Consumer management as part of the Citi India

Consumption Tour. Key takeaways: (a) demand has started to improve, Target price Rs400.00

helped by strong summer and partly led by low base; (b) Crompton’s Expected share price return 51.0%

products are relatively non-discretionary, but sticker (price) shock can Expected dividend yield 1.1%

defer purchases and channel elasticity can shift share across brands; (c) Expected total return 52.1%

Crompton has taken 4 rounds of price hikes in fans aggregating ~9–10%

Market Cap Rs170,605M (~12–13% vs 3Q levels) – however, other industry players have not taken

US$1,801M the requisite price hike; (d) structural initiatives over the last 3 years —

GTM, cost reset, lighting turnaround, Butterfly recovery, SDA growth, solar

pumps/rooftop, and wires — are starting to show results; and (e) near-

term priority is revenue growth, while margin recovery should be more Ashish Kanodia, CFAAC

visible through FY27. +91-22-6175-9805

ashish.kanodia@citi.com

Demand: Management indicated demand is improving and traditional categories (for

Crompton) such as fans and pumps should benefit from hot summer/weak monsoon

dynamics (although the intensity of demand improvement will be relatively lower vs

ACs given difference in penetration and discretionary nature of demand). Crompton

has also been deliberately diversifying into categories with lower seasonality such as

kitchen appliances, solar rooftop, and wires.