Crompton Greaves Consumer Electricals Ltd Hits 52-Week Low at Rs.228.2

Stock Performance and Market Context

The stock has been on a downward trajectory for the past six consecutive trading sessions, resulting in a cumulative loss of 10.29% over this period. Today’s closing price of Rs.228.2 represents the lowest level the stock has traded at in the last year, a stark contrast to its 52-week high of Rs.372.85. This decline has occurred despite the broader market’s relatively stable performance, with the Sensex opening flat and currently trading marginally lower at 82,209.91, down 0.12% from the previous close.

Notably, the Sensex remains within 4.8% of its own 52-week high of 86,159.02, and while it is trading below its 50-day moving average, the 50-day average itself remains above the 200-day moving average, indicating a generally positive medium-term market trend. In contrast, Crompton Greaves Consumer Electricals Ltd is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the stock’s relative weakness within the Electronics & Appliances sector.

Financial Performance and Operational Metrics

The company’s recent quarterly results have reflected some pressures. The Profit After Tax (PAT) for the quarter ending September 2025 stood at Rs.86.19 crore, representing a decline of 34.5% compared to the average of the previous four quarters. This drop in profitability has contributed to the stock’s subdued performance. Additionally, the company reported its lowest quarterly PBDIT at Rs.158.37 crore, signalling a contraction in earnings before interest, depreciation, and taxes.

Further, the Debtors Turnover Ratio for the half-year period was recorded at 1.02 times, the lowest in recent periods, indicating slower collection efficiency. These financial indicators have weighed on investor sentiment and contributed to the stock’s downward momentum.

Long-Term Growth and Valuation Considerations

Over the past five years, Crompton Greaves Consumer Electricals Ltd has exhibited modest operating profit growth at an annualised rate of 3.50%, which is relatively subdued compared to sector peers. The stock’s one-year return of -34.94% starkly contrasts with the Sensex’s positive 7.44% return over the same period, highlighting the stock’s underperformance within the broader market context.

Moreover, the company has underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, reflecting persistent challenges in delivering superior returns.

Balance Sheet Strength and Efficiency Metrics

Despite the recent price weakness, Crompton Greaves Consumer Electricals Ltd maintains several positive financial attributes. The company’s Return on Capital Employed (ROCE) stands at a robust 29.59%, indicating efficient utilisation of capital resources. Additionally, the average Debt to Equity ratio remains low at 0.08 times, suggesting a conservative capital structure with limited leverage.

The Return on Equity (ROE) is recorded at 14.4%, and the stock trades at a Price to Book Value of 4.4, which is considered attractive relative to its historical valuations and peer group. This valuation discount may reflect the market’s cautious stance given recent earnings trends and price performance.

Institutional investors hold a significant stake in the company, with 86.81% of shares held by such entities. This high level of institutional ownership indicates confidence from investors with substantial analytical resources, despite the stock’s recent decline.

Sector and Market Position

Crompton Greaves Consumer Electricals Ltd operates within the Electronics & Appliances sector, a segment that has experienced varied performance across different companies. The stock’s current Mojo Score is 36.0, with a Mojo Grade of Sell, downgraded from Hold as of 16 May 2025. The Market Cap Grade is rated at 3, reflecting its mid-tier market capitalisation status.

On the day of the 52-week low, the stock underperformed its sector by 1.49%, indicating relative weakness even among its immediate peers. The stock’s day change was a decline of 0.44%, continuing the trend of subdued price action.

Summary of Key Metrics

The following key financial and market metrics summarise the current state of Crompton Greaves Consumer Electricals Ltd:

• New 52-week low price: Rs.228.2


• One-year stock return: -34.94%


• Sensex one-year return: +7.44%


• Operating profit growth (5-year CAGR): 3.50%


• Quarterly PAT (Sep 2025): Rs.86.19 crore (-34.5% vs previous 4Q average)


• Quarterly PBDIT (Sep 2025): Rs.158.37 crore (lowest recorded)


• Debtors Turnover Ratio (HY): 1.02 times (lowest)


• ROCE: 29.59%


• ROE: 14.4%


• Debt to Equity ratio (average): 0.08 times


• Price to Book Value: 4.4


• Institutional holdings: 86.81%

Conclusion

The decline of Crompton Greaves Consumer Electricals Ltd to its 52-week low of Rs.228.2 reflects a combination of subdued earnings performance, valuation adjustments, and relative underperformance within the sector and broader market. While the company maintains strong capital efficiency and a conservative balance sheet, recent quarterly results and market dynamics have contributed to the stock’s current valuation and price levels.

Investors and market participants will continue to monitor the company’s financial metrics and sector developments as the stock navigates this low price territory.

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