Shares of Crompton Greaves Consumer Electricals gained 2.8% on Thursday, August 20, trading at ₹252.3 following the company's positive outlook for financial years 2029 and 2031. According to reports from CNBC TV18, the stock has turned positive on a year-to-date basis after the company's investor day presentation. The market response reflects investor confidence in the company's ambitious growth projections for the next three years. NDTV Profit reports that domestic brokerage firm Motilal Oswal has reiterated its Buy rating on Crompton with a target price of ₹340, implying a potential upside of 35% from current market levels. ICICI Securities has now joined the bullish sentiment, maintaining a Buy rating with a target price of ₹313 in its latest research report dated August 20, 2026, implying a potential upside of 24% from current levels. Jefferies has further strengthened the bullish case, retaining its Buy rating with a target price of ₹330, implying an upside potential of approximately 28.9% from Crompton's trading price of ₹255.95 on Friday morning. Prabhudas Lilladher has now added to the positive sentiment, recommending a Buy rating with a target price of ₹330 in its research report dated August 21, 2026, based on 28x March 2028 estimated earnings. The brokerage estimates revenue/EBITDA/PAT CAGR of 14.8%/20.0%/20.7% over FY26-28E. From its 52-week high of ₹337.50 seen in September, the stock is down 26% following the 14.2% price increase implemented in the June quarter amid input cost inflation.
At its investor day, Crompton Greaves Consumer Electricals released optimistic revenue growth expectations, projecting a Compounded Annual Growth Rate (CAGR) of 13-14% until financial year 2029 and doubling revenue from ₹8,100 crore in FY26 by FY31. As reported by CNBC TV18, the company expects this growth trajectory to accelerate significantly, with revenue doubling by financial year 2031. According to ICICI Securities's latest research report dated August 20, 2026, the company aims to double revenue by FY31 and targets exit EBITDA margin of 12%+ over the next three years (by FY29). Jefferies projects a more conservative but still robust 12% revenue CAGR and 18% EPS CAGR over FY26–FY29, with the company targeting to double sales in five years (~14% CAGR). Prabhudas Lilladher notes that the management has guided for revenue CAGR of 14-15% till FY29 and 2x revenue by FY31, with exit EBITDA margin of 11-12% and 12%+, supported by premiumization, new product development (NPD)-led growth, broader distribution and operational excellence. The Economic Times reports that Motilal Oswal sees further upside in Crompton on premiumisation, new products and margin improvement.
The company outlined an ambitious margin expansion plan, with EBITDA margin expected to reach 11-12% by FY29 from 10.2% in FY26, with further expansion likely by FY31. According to CNBC TV18, this represents a significant improvement from current levels and demonstrates the company's focus on operational efficiency and cost management. Motilal Oswal notes that in FY26, Crompton's investments in research and development, advertising, and organisational capabilities weighed on overall OPM, while margins in Butterfly, Lighting, and ECD improved, supported by premiumisation. Jefferies models Crompton's EBITDA to rise from ₹8.27 billion in FY26 to ₹12.52 billion in FY29, with EBITDA margins improving steadily from 10.2% in FY26 to around 10.9% by FY28–FY29. The company expects 200 basis points expansion in EBITDA margin on a long-term basis, supported by premiumisation strategy and operating leverage. The Economic Times reports that brokerages remain constructive on a diverse set of consumer, financial and textile plays, despite near-term challenges around input costs, regulation and competitive pressures.
The company's strategic focus on premiumisation and innovation is evident in its new product launches and market approach. As reported by The Economic Times, Crompton has launched Rhion as part of its premium strategy, targeting discerning consumers who want reimagined living solutions rather than traditional functional products. The Biofier water purifier exemplifies this approach, focusing on retaining natural minerals in water while ensuring environmental responsibility and smart connectivity. The company expects Rhion to become a ₹300-crore business within three years, with plans to democratise these premium solutions across the broader Crompton portfolio. According to Prabhudas Lilladher, the company has expanded its total addressable market (TAM) from ~₹0.8t to ~₹1.6t through new product development and entry into adjacent categories such as wires, water purifiers, and solar. New businesses are expected to contribute ~20% of sales by FY31, with the smart and connected mix business growing to 15% of overall revenue by financial year 2029 and 20% by 2031. Nomura Research noted that Crompton's research and development spend rose to around 1.1% of sales in FY26 from a mere 0.4% in FY22/23, indicating a thrust towards innovation. New category boost through wires, solar products, and water purifiers is expected to provide diversification and reduce seasonality impact since these are less weather-dependent. Alternate sales channels (rural, e-commerce, modern trade) grew to 27% of sales in FY26, with a planned ₹3.5 billion capex for a new ceiling fan facility by FY29 set to increase in-house production beyond its current 50% level.
According to Motilal Oswal's latest research report, Crompton demonstrates strong financial health with net cash positive position of ₹180 crore in FY26 and generated robust free cash flow of ~₹650 crore+ annually over FY24-26. The company trades inexpensively at 27x/22x FY27E/FY28E EPS, as highlighted by the brokerage. In the first quarter of FY26, Crompton Greaves Consumer Electricals reported solid operational performance with revenue increasing 11.8% to ₹2,235 crore from ₹1,998 crore in the previous year. Net profit increased 14.8% to ₹141 crore from ₹122 crore last year, though this was below Street estimates of ₹143 crore. The company's EBITDA increased 14.2% to ₹224.2 crore with EBITDA margin expanding to 10% from 9.6% in the year-ago period. ICICI Securities notes that the company has demonstrated that growth investments can be funded internally, supported by strong cash generation and a net-cash balance sheet. Jefferies projects adjusted net profit to grow from ₹5.14 billion in FY26 to ₹8.42 billion by FY29, with EPS increasing from ₹8.0 to ₹13.1. The brokerage forecasts EPS growth of 21% in FY27, 18% in FY28, and 15% in FY29, with Jefferies' target price based on a target P/E multiple of 28 times June 2028 estimated earnings per share (EPS), which trades at a discount to the stock's five-year historical average of around 34 times.
