Crompton Greaves Consumer Electricals Ltd is Rated Hold

Understanding the Current Rating

The 'Hold' rating assigned to Crompton Greaves Consumer Electricals Ltd indicates a neutral stance for investors. It suggests that while the stock may not offer significant upside potential in the near term, it is not expected to underperform drastically either. This rating is based on a balanced assessment of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall investment thesis and helps investors understand the stock’s risk-reward profile.

Quality Assessment

As of 21 February 2026, Crompton Greaves Consumer Electricals Ltd demonstrates strong management efficiency, reflected in a high Return on Capital Employed (ROCE) of 29.59%. This indicates that the company is effective at generating profits from its capital base, a positive sign for long-term sustainability. Additionally, the company maintains a low average Debt to Equity ratio of 0.08 times, signalling prudent financial leverage and a conservative capital structure. These quality metrics contribute to the 'good' quality grade assigned by MarketsMOJO, underscoring the company’s operational soundness despite some challenges in growth.

Valuation Perspective

The valuation of Crompton Greaves Consumer Electricals Ltd is currently considered attractive. The stock trades at a Price to Book Value of approximately 5, which is fair relative to its peers and historical averages. The company’s Return on Equity (ROE) stands at 14.4%, supporting this valuation level. While the stock has underperformed the broader market, with a one-year return of -20.61% compared to the BSE500’s 11.96% gain, its valuation metrics suggest that the market may be pricing in some of the company’s recent challenges. Investors should note that the attractive valuation does not imply immediate upside but rather a reasonable price given the company’s fundamentals.

Financial Trend Analysis

The financial trend for Crompton Greaves Consumer Electricals Ltd is relatively flat, reflecting subdued growth over recent periods. Operating profit has grown at a modest annual rate of 1.30% over the last five years, indicating limited expansion in core profitability. The latest quarterly results ending December 2025 show a decline in key profitability metrics: Profit Before Tax (excluding other income) fell by 5.4% to ₹143.29 crores, and Profit After Tax decreased by 7.2% to ₹113.19 crores compared to the previous four-quarter average. Cash and cash equivalents are at a low ₹34.11 crores for the half-year, signalling tight liquidity. These factors highlight the challenges the company faces in driving earnings growth, which tempers enthusiasm despite its strong quality metrics.

Technical Outlook

From a technical perspective, the stock is mildly bearish. While it has shown some short-term positive momentum, with a one-month gain of 13.97% and a year-to-date return of 5.53%, the six-month and one-year returns remain negative at -18.83% and -20.61% respectively. The stock’s recent day change was a modest +0.28%, indicating limited volatility. This technical profile suggests cautious investor sentiment, reflecting uncertainty about the company’s near-term prospects despite some recovery signs.

Market Position and Institutional Confidence

Crompton Greaves Consumer Electricals Ltd is classified as a small-cap stock within the Electronics & Appliances sector. Institutional investors hold a significant 86.3% stake, which is a positive indicator of confidence from sophisticated market participants who typically conduct thorough fundamental analysis. However, the stock has underperformed the broader market index over the past year, which may reflect sector-specific headwinds or company-specific challenges that investors should monitor closely.

Here's How the Stock Looks TODAY

As of 21 February 2026, the stock’s fundamentals and market performance paint a nuanced picture. While the company boasts strong management efficiency and a conservative balance sheet, its growth trajectory remains subdued, and recent quarterly earnings have declined. The valuation is attractive relative to peers, but the technical indicators suggest caution. Investors considering Crompton Greaves Consumer Electricals Ltd should weigh these factors carefully, recognising that the 'Hold' rating reflects a balanced view that neither strongly favours buying nor selling at this juncture.

Investor Takeaway

For investors, the 'Hold' rating on Crompton Greaves Consumer Electricals Ltd suggests maintaining existing positions rather than initiating new ones or exiting holdings aggressively. The company’s strong quality metrics and attractive valuation provide a foundation of stability, but the flat financial trend and mild technical bearishness warrant a cautious approach. Monitoring upcoming quarterly results and sector developments will be crucial to reassessing the stock’s outlook in the coming months.

Sector and Market Context

The Electronics & Appliances sector has experienced mixed performance recently, with some companies benefiting from consumer demand recovery while others face margin pressures. Crompton Greaves Consumer Electricals Ltd’s performance relative to the BSE500 index, which has returned 11.96% over the past year, indicates it has lagged behind broader market gains. This underperformance may reflect company-specific challenges or competitive pressures within the sector. Investors should consider these broader market dynamics alongside company fundamentals when evaluating the stock.

Summary of Key Metrics as of 21 February 2026

- Market Capitalisation: Small Cap
- Mojo Score: 50.0 (Hold)
- Quality Grade: Good
- Valuation Grade: Attractive
- Financial Grade: Flat
- Technical Grade: Mildly Bearish
- ROCE: 29.59%
- Debt to Equity Ratio: 0.08 times
- ROE: 14.4%
- Price to Book Value: 5
- 1-Year Stock Return: -20.61%
- Institutional Holdings: 86.3%

These figures collectively inform the current 'Hold' rating, reflecting a stock that offers reasonable quality and valuation but faces growth and technical challenges.

Conclusion

Crompton Greaves Consumer Electricals Ltd’s current 'Hold' rating by MarketsMOJO, updated on 09 February 2026, is grounded in a comprehensive evaluation of its quality, valuation, financial trends, and technical outlook as of 21 February 2026. Investors should interpret this rating as a signal to maintain a balanced view, recognising the company’s strengths in management efficiency and valuation while remaining mindful of its subdued growth and recent earnings softness. This measured stance supports prudent portfolio management amid evolving market conditions.

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