Crompton Greaves Consumer Electricals Falls to 52-Week Low of Rs.261.65

Stock Price Movement and Market Context

On 2 December 2025, Crompton Greaves Consumer Electricals touched Rs.261.65, its lowest price point in the last 52 weeks. This price follows a sequence of declines over the preceding days, although the stock recorded a slight gain today, outperforming its sector by 0.43%. Despite this minor uptick, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating persistent downward pressure in the short to long term.

In contrast, the broader market index, the Sensex, opened lower by 316.39 points but is currently trading at 85,308.86, just 1% shy of its 52-week high of 86,159.02. The Sensex maintains a bullish stance, trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling overall market strength despite the stock’s weakness.

Performance Analysis Over One Year

The stock’s performance over the past year shows a decline of 37.18%, a stark contrast to the Sensex’s positive return of 6.30% during the same period. This underperformance extends beyond the last year, with Crompton Greaves Consumer Electricals also lagging behind the BSE500 index over the last three years, one year, and three months. The 52-week high for the stock was Rs.419.15, highlighting the extent of the price contraction.

Financial Metrics Reflecting Recent Trends

The company’s quarterly profit after tax (PAT) stood at Rs.86.19 crore in the most recent quarter, representing a decline of 34.5% compared to the average of the previous four quarters. This reduction in profitability is accompanied by a quarterly PBDIT (Profit Before Depreciation, Interest and Taxes) of Rs.158.37 crore, which is the lowest recorded in recent periods.

Additionally, the debtor turnover ratio for the half-year period is at 1.02 times, indicating slower collection efficiency relative to historical levels. These figures collectively point to subdued near-term financial performance.

Long-Term Growth and Valuation Considerations

Over the last five years, the operating profit has shown a compound annual growth rate of approximately 3.50%, which suggests modest expansion in earnings capacity. The stock’s valuation metrics include a price-to-book value of 5, which aligns with its sector peers’ historical averages. The company’s return on equity (ROE) is recorded at 14.4%, while the return on capital employed (ROCE) is notably high at 29.59%, reflecting efficient utilisation of capital resources.

Debt levels remain low, with an average debt-to-equity ratio of 0.08 times, underscoring a conservative capital structure. Institutional investors hold a significant stake of 86.81%, indicating substantial ownership by entities with extensive analytical capabilities.

Summary of Key Factors Influencing the Stock’s Current Position

The stock’s decline to its 52-week low is underpinned by a combination of subdued profit trends, lower turnover efficiency, and a lack of significant growth momentum over recent years. While the company maintains strong capital efficiency and a conservative debt profile, these strengths have not translated into positive price performance in the current market cycle.

Despite the broader market’s positive trajectory, as evidenced by the Sensex’s proximity to its 52-week high and bullish moving averages, Crompton Greaves Consumer Electricals remains under pressure, reflecting sector-specific and company-specific dynamics.

Investors and market participants will continue to monitor the stock’s price movements and financial disclosures to assess any shifts in performance trends or valuation metrics.

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