Crompton Greaves Consumer Electricals Ltd. manufactures an array of consumer products including pumps, air purifiers, household appliances like toasters, geysers, mixer grinders, and irons.Market Capitalisation
The market capitalisation of Crompton Greaves Consumer Electricals Ltd. (CGCEL) as on 30 July 2018 was a little over Rs.15,165 crore.
Company’s Wealth and Recent Performance
- CGCEL posted a total income of Rs.1,204 crore for the quarter ended 30 June 2018. The company’s comparable revenue increased by 20% due to GST transition. For Q1 FY 2019, the Profit After Tax (PAT) was at Rs.104 crore, up by 30%. PAT margin increased from 8.0% in Q1 FY18 to 8.7% in Q1 FY19.
- The company attributed the growth in revenue to its electrical consumer durable segment which grew by 23%. It was mainly driven by Air 360 fans and mini pumps. Meanwhile, revenue for the lighting segment (excluding EESL) grew by 15%.
- CGCEL recorded a total income of Rs.1126.3 crore for the quarter four ended 31 March 2018. It posted a growth of 4.7% year on year (YoY). The company’s comparable revenue after adjusting the impact of excise posted an increase of 12.9%.
- The total income for the financial year 2017-18 was Rs.4105.1 crore. The company’s comparable revenue growth was at 8.4%. The company attributed the impact on revenue due to the GST implementation in Q1 FY18. Comparable revenue growth for 9 months post-GST implementation was 13.4%. This growth has largely been driven by underlying volume growth.
- The Profit After Tax (PAT) for the Q4 FY18 was at Rs.103.2 crore, up by 32.4%. There was a 7.2% increase in PAT margin in Q4 FY17 to 9.2% in Q4 FY18. The PAT for full year FY18 was at Rs.323.8 crore, up by 14.3%.
- The company has recorded a growth of about 50% from its premium fan segment over the past couple of years. Meanwhile, in the domestic fan market, the company’s market share posted a growth of about 27%, up 3-4% from the past 2-3 years. CGCEL’s was the first company to introduce an ‘anti-dust’ fan in the market and has accumulated sales worth Rs.200 crore from the same.
- CGCEL’s lighting and fixtures segment recorded a jump of 12% in FY18 owing to strong demand in B2C as well as B2B verticals. The company is currently working on a couple of premium LED products that are expected to roll out in 2018. In April 2018, the company launched Tricool India’s first real window cooler.
Crompton Greaves Consumer Electricals Ltd. Stock Trends in 2018
- The opening price of the Crompton Greaves Consumer Electricals Ltd. stock as on 1 January 2018 was Rs.275 on NSE. The price of the stock was pretty stable in the first half of the month however, it fell by 15-20 points by the end of the month. The opening price of the stock by the end of the month was Rs.252. In the month of February, the scrip continued to fall and ended the month at Rs.232.
- In March, the scrip failed to pick up strength and continued to decrease throughout the month. The opening price of the stock by the end of the month was Rs.227. The price of the stock changed marginally in the month of April and was at Rs.233 by the end of the month. In May, the scrip did not showcase any major increase in the first fifteen days. The stock price decreased by the end of the month and was at Rs.222.
- The trend did not change in the month of June as the scrip kept falling further. The opening price of the stock at the beginning of June was Rs.228 and ended the month at Rs.221. The scrip finally picked up the pace in July and gradually started to increase throughout the month. As on 30 July 2018, the opening price of the stock was at Rs.244.
Crompton Greaves Consumer Electricals Ltd. Stock Trends in 2016 and 2017
- The Crompton Greaves Consumer Electricals Ltd. debuted on the stock market in May. The opening price of on 13 May 2016 was Rs.129 on NSE. It changed marginally for the remaining month. The same pattern continued in June and the price of the stock was at Rs.139 by the end of the month. In July, the scrip gained strength and crossed Rs.150 by the end of the month. The price of the stock surged by over 25 points at the beginning of August. The scrip continued to increase throughout the month and ended the month at Rs.166.
- In September 2016, the scrip declined by around 10 points and was at Rs.153 by the end of the month. The price of the stock surged in the month of October since the beginning. It increased by more than 25 points in the first 15 days and ended the month at Rs.184. In November, the price of the stock kept declined by more than 25 points in the first half of the month and ended the month at Rs.147. The price of the stock changed marginally in the month of December. The opening price of the scrip by the end of December was Rs.147.
- The opening price of the stock on 2 January 2018 was Rs.145 on NSE. The scrip increased by more than 35 points and ended the month at Rs.186. In the month of February, the stock price crossed the Rs.200 mark and ended the month at Rs.193. The price of the stock changed marginally in the month of March and was at Rs.213 by the end of the month. In April, the opening price of the stock was Rs.218 following which it remained stable throughout the month.
- In the month of May, the scrip increased by more than 20 points in the first 15 days and was at Rs.240. The opening price of the stock by the end of May was Rs.220. In June, the scrip changed marginally while it continued the downfall in July. The stock price was at Rs. 210 by the end of July. In August, the scrip posted marginal change and ended the month at Rs.220.
- The price of the stock in September was stable and did not witness much change. In October, the scrip gained strength by the end of the month and was at Rs.225. In November the price of the stock increased by around 40 points and ended the month at Rs.262. In the month of December, the scrip was stable and ended the month at Rs.269.
Should you invest in Crompton Greaves Consumer Electricals Ltd.?
- Crompton Greaves Consumer Electricals Ltd. has been focusing on product innovation and diversification. It is also working on more premium products like fans in the consumer product. The company has been consistently gaining market share across segments and products. It has been working on enhancing the product portfolio.
- In terms of the share price, the stock has been stable for the past couple of years. It has seen consistent growth in the price over the years and has not witnessed any drastic price fluctuations. Investing in the Crompton Greaves Consumer Electricals Ltd stock for a long-term purpose could be a good investment option. However, it is strongly advised that you do a strong research before investing your hard-earned money in the stock market as it is risky due to its volatile nature.
The company has been a market leader in street lighting, home electrical appliances like fans for more than 20 years. Crompton claims to be India’s market leader in fans and residential pumps. The company has the largest number of 5-Star rated energy efficient products. In 1989, the company was first to surpass sales of a million fans. Crompton Greaves adopted a new brand identity in 2009 and is since known as CG.
Management of the company
Mr Shantanu Khosla - Managing Director
Mr Shantanu Khosla joined Crompton Greaves Consumer Electricals Ltd in January 2016. Before joining the company, was the MD & CEO at Procter & Gamble India from July 2002 to June 2015. Mr Khosla completed his Bachelor of Technology in Mechanical Engineering from the Indian Institute of Technology (IIT), Mumbai. He is an alumnus of Indian Institute of Management (IIM), Kolkata. He has also served as the Member of the Board of Governors at Advertising Standards Council of India.
Mr Mathew Job - Chief Executive Officer
Mr Mathew Job joined CGCELin January 2016. Before coming on-board with the company, he held several key positions at Philips Electronics India Ltd from June 1994 to October 2009. He has also worked with Grohe India Pvt Ltd as VP and MD. He completed his Bachelor in Technology (Electrical & Electronics) and is also an alumnus of the IIM Kolkata.
Listings in NSE, BSE, and Indices
The stock of Crompton Greaves Consumer Electricals Ltd. is available for trading on the two major stock exchanges of India - The National Stock Exchange Limited (NSE) and The Bombay Stock Exchange (BSE).
Sector: Infrastructure - Electricals
The company forms a part of important indices like:
- Nifty 200
- Nifty 500
- Nifty Alpha 50
- S&P BSE 100
- S&P BSE 200
- S&P BSE 500
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