Understanding the Current Rating
The 'Sell' rating assigned to Crompton Greaves Consumer Electricals Ltd indicates a cautious stance for investors, suggesting that the stock may underperform relative to the broader market or its sector peers in the near to medium term. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment and helps investors understand the rationale behind the current rating.
Quality Assessment
As of 20 January 2026, the company maintains a good quality grade. This reflects a stable operational foundation and a reasonable level of business resilience. However, despite this positive quality indicator, the company’s long-term growth has been modest. Operating profit has grown at an annualised rate of just 3.50% over the past five years, signalling limited expansion in core profitability. This slow growth rate constrains the company’s ability to generate significant shareholder value over time.
Valuation Perspective
The valuation grade for Crompton Greaves Consumer Electricals Ltd is currently deemed attractive. This suggests that, relative to its earnings and asset base, the stock is priced at a level that could offer value to investors. Despite the attractive valuation, the stock’s recent price performance has been weak, reflecting broader concerns about the company’s financial health and market sentiment. Investors should weigh this valuation advantage against the company’s operational challenges and market risks.
Financial Trend Analysis
The financial trend for the company is negative as of the latest data. The most recent quarterly results, for September 2025, revealed a significant decline in profitability. The profit after tax (PAT) stood at ₹86.19 crores, down by 34.5% compared to the previous four-quarter average. Additionally, the PBDIT for the quarter was at a low ₹158.37 crores, indicating pressure on operating earnings. The debtors turnover ratio for the half-year was also at a concerning low of 1.02 times, signalling potential inefficiencies in receivables management. These indicators collectively point to deteriorating financial health and operational challenges.
Technical Outlook
From a technical standpoint, the stock is rated bearish. Price action over recent months has been weak, with the stock declining by 33.27% over the past year. Shorter-term trends are similarly negative, with losses of 15.84% over three months and 5.49% over one month. The downward momentum is further reflected in the stock’s underperformance relative to the BSE500 index over one year, three years, and three months. This technical weakness suggests limited near-term upside and heightened risk of further declines.
Stock Returns and Market Performance
As of 20 January 2026, Crompton Greaves Consumer Electricals Ltd has delivered disappointing returns across multiple time frames. The stock has declined by 33.27% over the last year, underperforming the broader market benchmarks. Year-to-date, the stock is down 4.26%, and the six-month return stands at -29.68%. These figures highlight the challenges faced by the company in regaining investor confidence and market momentum.
Sector and Market Context
Operating within the Electronics & Appliances sector, Crompton Greaves Consumer Electricals Ltd faces competitive pressures and evolving consumer preferences. The small-cap status of the company adds an additional layer of volatility and risk, as smaller companies often experience greater fluctuations in earnings and stock price. Investors should consider these sector dynamics alongside the company’s specific financial and operational metrics when making investment decisions.
Fundamentals that don't lie! This Small Cap from Trading shows consistent growth and price strength over time. A reliable pick you can truly count on.
- - Strong fundamental track record
- - Consistent growth trajectory
- - Reliable price strength
What This Rating Means for Investors
The 'Sell' rating from MarketsMOJO advises investors to exercise caution with Crompton Greaves Consumer Electricals Ltd. While the stock’s valuation appears attractive, the negative financial trends and bearish technical outlook suggest that the risks currently outweigh potential rewards. Investors holding the stock may consider reviewing their positions in light of the company’s recent performance and outlook. Prospective buyers should be mindful of the operational challenges and market headwinds before committing capital.
Looking Ahead
For Crompton Greaves Consumer Electricals Ltd to improve its standing, it will need to demonstrate a turnaround in profitability and operational efficiency. Improvements in receivables management, stabilisation of earnings, and a more positive technical trend would be key indicators to watch. Until such signs emerge, the cautious stance reflected in the 'Sell' rating remains justified.
Summary
In summary, Crompton Greaves Consumer Electricals Ltd is rated 'Sell' by MarketsMOJO as of the rating update on 07 August 2025. The current analysis, based on data as of 20 January 2026, highlights a company facing financial headwinds, weak stock performance, and a challenging technical outlook despite an attractive valuation and decent quality grade. Investors should carefully weigh these factors when considering their exposure to this stock.
Unlock special upgrade rates for a limited period. Start Saving Now →
