Motilal Oswal: Crompton Greaves - Catalysts Emerging; Valuation Comfort Immense

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Competitive intensity has bottomed out in the lighting industry, though not completely over.This can be gauged by the price hikes over the past six months. The last round of price cuts occurred in August 2019 and will form part of the base September 2020 onwards.Thus, we expect Crompton Greaves Consumer Electricals Ltd. value growth in the lighting segment to follow volume growth while margins should be on an uptrend Q2 FY21 onwards (full quarter impact expected to reflect in Q3 FY21 only).Crompton Greaves’ business model is most resilient in times of a crisis.The company showcased best performance in Q1 FY21 with Ebitda decline of approximately 49% (versus decline of approximately 80% for our aggregate universe).Since Crompton Greaves’ categories have higher replacement demand, we see higher probability of steady performance in the coming quarters and in FY22E (versus negative impact for peers from weak consumer demand)..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal: Crompton Greaves - Catalysts Emerging; Valuation Comfort Immense

Competitive intensity has bottomed out in India’s lighting industry though not over.

Choose a plan