Motilal Oswal has upgraded its target price to ₹340 from previous levels, maintaining a 'Buy' rating on CG Consumer Electricals following the company's ambitious growth roadmap at Investor Day 2026. The brokerage estimates the company to report 13%/18%/21% revenue/EBITDA/PAT CAGR over FY26-28, with operating margins expected to expand to ~11% by FY28 from ~10% in FY26. This upgrade comes alongside the company's target of doubling revenues by FY31 and achieving exit EBITDA margins of 11-12% by FY29 and 12%+ by FY31.
CG Consumer faces a mixed brokerage response to its ambitious growth roadmap, with JPMorgan cutting its target price to ₹290 from ₹307 despite the company's plans for 13-14% annual revenue growth over FY26-29. The brokerage called the company's growth aspirations ambitious, with execution being key to delivering on ambitious targets. However, Jefferies and Citi retained positive ratings, with Jefferies maintaining its 'Buy' rating with target price of ₹330 and Citi keeping its 'Buy' rating with target price of ₹400. The company aims to double revenues by FY31 and expects EBITDA margins to exceed 12% by then, with new businesses targeted to contribute at least 20% of turnover.
The company has significantly ramped up its new product development (NPD) efforts, with 211 products launched in FY26 versus 165 in FY24, driving the share of revenue from new products to 17% from 7% over the same period. The total addressable market has expanded from ₹80,000 crore to ₹1,60,000 crore through expansion into categories such as solar rooftops, wires, and water purifiers. The solar rooftop market is expected to double by FY29, while the company has successfully reduced seasonality with seasonal products now accounting for ~20% of sales versus ~42% earlier. The company is focusing on premiumisation, with premium fans already accounting for around 25% of the company's fan portfolio, while new categories such as solar and wires are expected to provide additional growth avenues.
CG Consumer shares gained 2.38% to ₹258 during Friday's trading session following the company's ambitious growth roadmap announcement at Investor Day 2026. The stock opened at ₹256 and touched an intraday high of ₹259, while the day's low stood at ₹252.80. The company's market capitalisation stood at around ₹16,610 crore as investors responded positively to the strategic vision. The stock remains below its 52-week high of ₹337.50 but is above its 52-week low of ₹217.40.
The company's June quarter (Q1FY27) performance was below estimates, with revenues growing 12% year-on-year. As reported by Business Standard, the revenue miss was primarily attributed to the electric consumer durable (ECD) segment. Supply constraints on commodities and inputs, largely in the fan segment, resulted in a sales hit of ₹200 crore. However, growth was supported by the lighting segment, which grew 15%, and the Butterfly business, which recorded a gain of 18%.
On the profitability front, gross margins were lower by 91 basis points year-on-year due to commodity inflation. According to reports from Business Standard, the company was able to expand margins at the operating level by 45 basis points to 10% on account of cost-control initiatives and operating leverage. The company successfully offset about 80% of the inflation through high-single-to-low-double-digit price increases. The company expects premiumisation and BLDC adoption to support the fans business, with shorter replacement cycles and higher adoption of BLDC fans expected to boost the category. The company has raised its annual capex guidance to ₹1.2 billion through FY31, from ₹0.8 billion in FY26.
Despite the Q1FY27 miss, brokerages remain positive on the company's prospects for FY27. As reported by Business Standard, analysts led by Manoj Gori of Equirus Securities believe the topline miss reflects one-off lost sales, while the margin print reflects genuine cost discipline. Jefferies maintained its 'Buy' rating with a target price of ₹330, describing the company's strategy as a "metamorphosis" and expecting Crompton's earnings per share (EPS) to grow at an 18% CAGR between FY26 and FY29, significantly higher than the 1% CAGR recorded during FY20-FY26. Citi remained bullish with a 'Buy' rating and target price of ₹400, expecting Crompton to deliver a 15% CAGR between FY26 and FY31, compared with 10.7% during FY22-FY26. JP Morgan maintained a 'Neutral' rating while cutting its target price to ₹290, highlighting that execution would be key to achieving ambitious growth aspirations.
