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

Crompton Greaves Consumer Electrical, a leading player in the consumer electronics industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as a result of the company's strong management efficiency, with a high ROCE of 48.63%. Additionally, the company has a low Debt to Equity ratio, indicating a healthy financial position.
In the latest quarter, Crompton Greaves Consumer Electrical has shown positive results, with its operating cash flow at its highest at Rs 843.41 crore and net sales at Rs 2,137.69 crore. Its PBDIT has also seen a significant increase at Rs 232.37 crore. These numbers reflect the company's strong performance and growth potential.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement since August 7, 2024. The MACD and KST technical factors are also bullish, indicating a positive trend for the stock.

One of the key factors contributing to the company's success is its high institutional holdings at 86.36%. These investors have the resources and capability to analyze the fundamentals of companies, making their increased stake in Crompton Greaves Consumer Electrical a positive sign for retail investors.

In terms of market performance, the stock has outperformed the market (BSE 500) with a return of 46.25% in the last year. With a market cap of Rs 28,001 crore, it is the second largest company in the sector and accounts for 19.04% of the entire sector. Its annual sales of Rs 7,573.65 crore make up 14.63% of the industry, further solidifying its position in the market.

However, there are some risks to consider. The company has shown poor long-term growth, with an annual growth rate of only 3.71% over the last 5 years. Additionally, its ROE of 14.7 indicates an expensive valuation with a price to book value of 9.3. The stock is also trading at a premium compared to its historical valuations, with a PEG ratio of 26.9.

Overall, Crompton Greaves Consumer Electrical is a strong player in the consumer electronics industry with a positive outlook. Its recent 'Buy' rating from MarketsMOJO and strong financial performance make it a promising investment opportunity. However, investors should also consider the potential risks before making any investment decisions.