Crompton Greaves Consumer Electricals Ltd.
NSE: CROMPTONCrompton Greaves Consumer Electricals Ltd.: A 30-second snapshot
Crompton Greaves Consumer Electricals (Rs 301.95) trades above its 50-DMA (Rs 255.93) and 200-DMA (Rs 274.89) after a 13.5% three-month rally, yet the stock is still down 7.98% over one year and 16.02% off its 52-week high. The company carries a debt-to-equity of 4.83, a 5-year earnings CAGR of -10.5%, and reported a Q4FY26 net loss after a one-off charge — three concurrent pressures on profitability that contrast with the recent price recovery.
P/E
—
Forward P/E
26.1
ROE
—
Debt / Equity
4.83
Profit Margin
+5.9%
Div. Yield
+1.1%
5Y ROE > 15%
3/5
5Y FCF > 0
4/5
Quality
43/100
News
7 headlines · 1 positive · 3 negative
Crompton Greaves Launches 'Crompton Rhion', Targets ₹2,000 Cr Solar Business - scanx.trade
scanx.trade
Crompton Greaves slips into Q4 loss after one-off hit despite revenue growth - CNBC TV18
CNBC TV18
Crompton Greaves Consumer Electricals Senior Management Resignation Effective July 27, 2026 - scanx.trade
scanx.trade
Crompton Greaves Consumer Electricals Schedules Q4FY26 Earnings Call for May 13, 2026 - scanx.trade
scanx.trade
Crompton Greaves Consumer Electricals Announces Company Secretary Resignation Effective April 23, 2026 - scanx.trade
scanx.trade
Recent context
- ·Q4FY26 results announced May 13, 2026 showed CROMPTON slipped to a net loss due to a one-off charge even as revenue grew, the most recent data point on earnings quality.
- ·Two senior departures disclosed within three weeks: Company Secretary resignation effective April 23, 2026, and a senior management exit effective July 27, 2026 — both filed as regulatory disclosures.
- ·Crompton Rhion, a new solar products sub-brand, was launched with a stated target of Rs 2,000 crore in solar business, representing the publicly announced strategic growth initiative for FY27 and beyond.
Strengths
- +Forward PE of 26.1x is well below Consumer Goods sector peers — Asian Paints (64.9x), Titan (73.0x), Trent (84.7x), and DMart (95.2x) — placing CROMPTON at a significant valuation discount to the peer group on this metric.
- +Debt trend is reported as falling, and FCF was positive in 4 of the last available years, suggesting the leverage situation may be improving from its current elevated starting point.
- +Revenue has grown at a 7.3% 5-year CAGR, demonstrating top-line traction in consumer electricals despite the earnings contraction over the same period.
- +Solar business expansion via the newly launched Crompton Rhion brand targets a Rs 2,000 crore segment, representing a disclosed diversification initiative beyond the core electricals portfolio.
Weaknesses
- −5-year earnings CAGR of -10.5% alongside 7.3% revenue growth implies sustained margin compression; net profit margin stands at 5.86%, which is thin for a branded consumer electricals business.
- −Debt-to-equity of 4.83 is far above typical non-financial consumer company levels; this leverage amplifies sensitivity to interest rate movements and operating performance shortfalls.
- −Q4FY26 produced a net loss after a one-off charge, adding a quarterly earnings failure to a multi-year trend of earnings contraction — the most recent reported data point on profitability.
- −Quality score of 24 ranks last (6 of 6) among Consumer Goods sector peers; ROE data is unavailable for CROMPTON, preventing direct profitability benchmarking against Titan (37.1%) and Trent (27.1%).
Open questions
- ?Does the Q4FY26 one-off charge represent a genuinely non-recurring item, or does it reflect a structural cost that has been classified as exceptional?
- ?Is the falling debt trend sufficient to bring D/E materially below 4x over the next two to three years given the current FCF profile and stated capital allocation priorities?
- ?What proportion of the 5-year earnings decline is attributable to the Butterfly Gandhimathi acquisition integration costs, and has integration-related drag been fully absorbed in reported numbers?
- ?Does the Rs 2,000 crore solar target represent incremental revenue with accretive margins, or does it require capital expenditure that could further pressure the balance sheet?
Peer comparison: Consumer Goods
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| CROMPTON | Crompton Greaves Consumer Electricals Ltd.You're viewing | — | — | 24 |
| Industry avg | across 5 peers | 79.5 | +19.6% | 37 |
| TRENT | Trent Ltd. | 84.7 | +27.1% | 49 |
| ETERNAL | Eternal Ltd. | — | +1.2% | 41 |
| DMART | Avenue Supermarts Ltd. | 95.2 | +12.9% | 37 |
| TITAN | Titan Company Ltd. | 73.0 | +37.1% | 34 |
| ASIANPAINT | Asian Paints Ltd. | 64.9 | — | 23 |
Technical state
Current price
₹301.95
SMA 50
₹255.93
SMA 200
₹274.89
RSI (14)
70.7 (overbought)
From 52w high
-16.0%
1Y return
-8.0%
3M return
+13.5%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- highDebt-to-equity of 4.83 is substantially elevated for a consumer electricals company; non-financial consumer sector medians typically sit below 0.5, indicating significant balance-sheet leverage.
- high5-year earnings CAGR of -10.5% reflects persistent profit contraction despite 7.3% revenue growth over the same period, pointing to sustained margin compression or cost absorption that has eroded the bottom line.
- highQ4FY26 results showed a net loss after a one-off charge despite revenue growth; a quarterly loss is a material earnings event for a company already reporting a negative 5-year earnings CAGR.
- mediumTwo consecutive governance-role departures in close succession: Company Secretary resignation effective April 23, 2026, and a senior management resignation effective July 27, 2026 — back-to-back exits at this level warrant monitoring.
- mediumRSI at 70.71 is in overbought territory; the stock has risen 13.5% over 3 months while the 1-year return remains -7.98% and the 52-week drawdown from high is -16.02%, suggesting recent momentum has not reversed the longer-term decline.
- lowQuality score of 24 ranks CROMPTON last (6 of 6) among Consumer Goods sector peers; ROE data is unavailable for direct comparison, but the peer group (Asian Paints, Titan, Trent, DMart) carries meaningfully higher profitability profiles.
Cross-section contradictions
- Stock is trading above both its 50-DMA (Rs 255.93) and 200-DMA (Rs 274.89) and has rallied 13.5% over 3 months, yet the 5-year earnings CAGR is -10.5% and Q4FY26 reported a net loss — the technical recovery has outpaced any visible fundamental improvement in reported earnings.
- Analyst mean rating of 1.33 across 33 analysts (1-5 scale, lower = more constructive) contrasts with a negative news sentiment balance (3 negative vs 1 positive out of 7 articles) and a quarterly loss in Q4FY26.
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Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days