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 of the company’s investment appeal.
Quality Assessment
As of 31 January 2026, Crompton Greaves Consumer Electricals Ltd holds a 'good' quality grade. This reflects a stable operational foundation and a reasonable track record in managing its core business activities. Despite this, the company’s long-term growth has been modest, with operating profit increasing at an annualised rate of just 3.5% over the past five years. This slow growth rate signals challenges in scaling profitability and expanding market share in a competitive electronics and appliances sector.
Valuation Perspective
The stock’s valuation grade is currently rated as 'attractive', indicating that the share price may be reasonably priced or undervalued relative to its earnings potential and asset base. This suggests that, from a purely price-to-value standpoint, the stock could offer some appeal to value-focused investors. However, valuation alone does not guarantee positive returns, especially when other factors such as financial trends and technical indicators are less favourable.
Financial Trend Analysis
The financial trend for Crompton Greaves Consumer Electricals Ltd is assessed as 'negative'. The latest quarterly results for September 2025 reveal a significant decline in profitability, with the Profit After Tax (PAT) falling by 34.5% to ₹86.19 crores compared to the previous four-quarter average. Additionally, the company’s PBDIT for the quarter was at a low ₹158.37 crores, signalling operational pressures. The debtors turnover ratio for the half-year stands at a concerning 1.02 times, the lowest recorded, indicating potential issues in receivables management and cash flow.
Technical Outlook
Technically, the stock is rated as 'bearish'. Price performance over recent periods has been weak, with the share price declining by 0.05% on the latest trading day and showing a downward trend across multiple timeframes. Specifically, the stock has lost 12.26% year-to-date and 35.23% over the past year. This underperformance extends beyond the short term, as the stock has lagged the BSE500 index over the last three years, one year, and three months, reflecting sustained selling pressure and negative market sentiment.
Current Market Performance
As of 31 January 2026, Crompton Greaves Consumer Electricals Ltd is classified as a small-cap stock within the Electronics & Appliances sector. The company’s market capitalisation remains modest, and its recent stock returns have been disappointing. The 1-month return stands at -12.00%, while the 3-month and 6-month returns are -22.71% and -31.61%, respectively. These figures underscore the challenges the company faces in regaining investor confidence and delivering shareholder value.
Implications for Investors
The 'Sell' rating signals that investors should exercise caution with Crompton Greaves Consumer Electricals Ltd shares. While the valuation appears attractive, the negative financial trends and bearish technical indicators suggest that the stock may continue to face headwinds. Investors seeking capital preservation or growth may prefer to consider alternative opportunities with stronger fundamentals and more positive momentum.
Summary of Key Metrics
To recap, the MarketsMOJO Mojo Score for Crompton Greaves Consumer Electricals Ltd currently stands at 36.0, down from 50 at the time of the rating change on 07 Aug 2025. The downgrade in score reflects the deteriorating financial and technical conditions. The quality grade remains 'good', but the financial grade is 'negative', and the technical grade is 'bearish'. This combination underpins the current 'Sell' recommendation.
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Sector and Industry Context
The Electronics & Appliances sector remains competitive and dynamic, with companies facing pressure from evolving consumer preferences, technological innovation, and cost management challenges. Crompton Greaves Consumer Electricals Ltd’s modest growth and recent financial setbacks highlight the difficulties in maintaining a strong foothold amid these conditions. Investors should weigh these sectoral headwinds alongside company-specific factors when considering their portfolio allocations.
Looking Ahead
Given the current financial and technical outlook, the stock’s near-term prospects appear constrained. Investors should monitor upcoming quarterly results and any strategic initiatives by the company aimed at improving profitability and operational efficiency. Additionally, shifts in market sentiment or sector dynamics could influence the stock’s trajectory. Until then, the 'Sell' rating reflects a prudent approach based on the latest comprehensive analysis.
Conclusion
In summary, Crompton Greaves Consumer Electricals Ltd’s 'Sell' rating by MarketsMOJO, last updated on 07 August 2025, is supported by a combination of good quality but negative financial trends, bearish technical signals, and an attractive valuation that has yet to translate into positive returns. As of 31 January 2026, the stock’s performance and fundamentals suggest caution for investors, with the recommendation serving as a guide to manage risk and seek better opportunities within the sector or broader market.
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