Crompton Greaves Consumer Electrical Receives 'Buy' Rating from MarketsMOJO, Shows Strong Performance

Crompton Greaves Consumer Electrical, a leading player in the consumer durables and electronics industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as no surprise, considering the company's strong performance in the past year.
One of the key factors contributing to this 'Buy' rating is the high management efficiency of Crompton Greaves Consumer Electrical. With a ROCE (Return on Capital Employed) of 48.63%, the company has shown its ability to generate profits from its capital investments.

Moreover, the company has a low Debt to Equity ratio, indicating a healthy financial position. In fact, in the quarter ending June 2024, Crompton Greaves Consumer Electrical recorded its highest operating cash flow of Rs 843.41 crore, highest net sales of Rs 2,137.69 crore, and highest PBDIT (Profit Before Depreciation, Interest, and Taxes) of Rs 232.37 crore.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement in its trend from mildly bullish to bullish on 17th September 2024. This is supported by various factors such as MACD, Bollinger Band, and KST.

Another positive aspect of the company is its high institutional holdings of 86.36%. This indicates that these investors have better resources and capabilities to analyze the fundamentals of the company, making their stake increase by 2.35% in the previous quarter.

Crompton Greaves Consumer Electrical has also outperformed the market (BSE 500) with a return of 47.49% in the last year, compared to the market's return of 34.98%. With a market cap of Rs 28,770 crore, it is the second-largest company in the sector and accounts for 17.23% of the entire sector's market share. Its annual sales of Rs 7,573.65 crore also make up 14.60% of the industry.

However, there are some risks associated with investing in Crompton Greaves Consumer Electrical. The company has shown poor long-term growth, with an annual growth rate of only 3.71% in operating profit over the last 5 years. Additionally, with a ROE (Return on Equity) of 14.7, the stock is currently trading at an expensive valuation with a price to book value of 9.7. This is higher than its average historical valuations.

In conclusion, Crompton Greaves Consumer Electrical has shown strong performance and has received a 'Buy' rating from MarketsMOJO. However, investors should also consider the risks associated with the company before making any investment decisions.