Stock Performance and Market Context
The stock has been on a downward trajectory for the past five trading sessions, registering a cumulative loss of 9.82% during this period. Today's closing price of Rs.229 represents the lowest level in the past year, significantly below its 52-week high of Rs.372.85. This decline contrasts with the broader market, where the Sensex opened higher at 82,459.66, gaining 0.67% before settling slightly lower at 82,307.37, still up 0.49% on the day. Despite the Sensex being on a three-week losing streak with a 4.03% drop, mid-cap stocks have shown resilience, with the BSE Mid Cap index gaining 1.28% today.
The stock's underperformance is further highlighted by its relative weakness against the Electronics & Appliances sector, where it lagged by 1.13% today. Additionally, Crompton Greaves Consumer Electricals Ltd is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained downward momentum.
Financial Metrics and Profitability Trends
Over the last year, the company’s stock has delivered a negative return of 33.95%, markedly underperforming the Sensex, which posted a 7.73% gain over the same period. This poor stock performance aligns with subdued financial results. The company reported a quarterly profit after tax (PAT) of Rs.86.19 crore in the September 2025 quarter, reflecting a sharp decline of 34.5% compared to the previous four-quarter average. Operating profit growth has been modest, with an annualised increase of just 3.50% over the past five years, indicating limited expansion in core earnings.
Further, the company’s PBDIT for the quarter stood at Rs.158.37 crore, the lowest recorded in recent periods. The debtors turnover ratio for the half-year was also notably low at 1.02 times, suggesting slower collection cycles relative to industry norms. These factors collectively point to challenges in maintaining robust profitability and efficient working capital management.
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Valuation and Efficiency Indicators
Despite the recent price decline, Crompton Greaves Consumer Electricals Ltd maintains some positive attributes in terms of capital efficiency and balance sheet strength. The company boasts a high return on capital employed (ROCE) of 29.59%, reflecting effective utilisation of its capital base. Its return on equity (ROE) stands at 14.4%, which is considered attractive within its sector.
The company’s average debt-to-equity ratio remains low at 0.08 times, indicating a conservative leverage position that limits financial risk. Valuation metrics also suggest the stock is trading at a discount relative to its peers, with a price-to-book value ratio of 4.4, which is below the historical average for comparable companies in the Electronics & Appliances sector.
Institutional investors hold a significant stake in the company, with 86.81% of shares owned by these entities. This high level of institutional holding typically reflects confidence in the company’s fundamentals and governance, although it has not prevented the recent price decline.
Long-Term and Recent Performance Comparison
Over the last three years, the stock has consistently underperformed the BSE500 index, as well as its sector peers. The negative return of 33.95% over the past year is compounded by a profit decline of 2.6% during the same timeframe. This combination of falling profits and stock price suggests that the market is pricing in ongoing challenges for the company’s growth trajectory.
The broader market environment has been mixed, with the Sensex trading below its 50-day moving average, though the 50-day average remains above the 200-day average, indicating some underlying market resilience. However, Crompton Greaves Consumer Electricals Ltd’s sustained trading below all major moving averages highlights its relative weakness within this context.
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Summary of Key Metrics
To summarise, Crompton Greaves Consumer Electricals Ltd’s stock has reached a 52-week low of Rs.229 after a sustained period of decline. The company’s financial results reveal subdued profit growth and lower quarterly earnings, while valuation metrics indicate the stock is trading at a discount relative to peers. High institutional ownership and strong capital efficiency ratios provide some balance to the overall picture, though the stock’s performance remains below market and sector benchmarks.
Market participants will note the stock’s position below all major moving averages and its underperformance relative to the Sensex and sector indices. These factors collectively illustrate the challenges faced by the company in maintaining momentum amid a competitive and evolving market environment.
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