Crompton Greaves Consumer Electricals Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹215.50−₹0.05 (−0.02%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, the company is currently loss-making, small-cap size, which brings sharper price swings.

In simple words: The company is currently losing money, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Crompton Greaves Consumer Electricals Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Crompton Greaves Consumer Electricals Limited manufactures and markets consumer electrical products in India. It operates in two segments, Electrical Consumer Durables and Lighting Products.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees2,211

Annual revenue₹8,056 Cr

How does it make money?

Turns over ₹8,056 Cr a year. Of every ₹100 of sales, about ₹-3 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 2,211 employees supports ₹3.64 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.64 Cr

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -1.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE17.1%

What is the outlook?

29 analysts covering the stock expect revenue to grow about 28.7% and earnings to grow about 20.4% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+28.7%

Est. earnings growth+20.4%

Analysts29

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +18% while net margin moved -144% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+18%

Margin effect-144%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 25.6 points over the period

Quality vs. Valuation

Company Quality

35/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

25/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

39.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 80% over 3 years.
Cash generation is improving
Free cash flow is up 35% over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 17.4% to -8.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 18.4% to -1.5% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 4 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 5.78x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -2.6x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹242 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.8 points, from 12.1% to 4.3%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 16.8x to -2.6x.
🟡Receivables growing faster than salesFinancial
Receivables up 62% against revenue up 18% — sales are being booked faster than they are collected.
🟡Low reported insider holdingOwnership
Reported insider holding is 0.0%. For Indian companies this field is an unreliable proxy — check the official promoter shareholding in the exchange filing.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 80% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 12.1% to 4.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.78x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 62% against revenue up 18%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 5.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 17.4% to -8.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 2%✓ 4.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -2.6x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 4% a year✓ 5.6% CAGR
Latest reported year was 18.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹640 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

7 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 3 neutral · 5 weak

Market Cap

₹13,876 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

4.68x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-2.72

Loss-making

Negative earnings per share — the business is losing money

ROE

-4.4%

Weak

Weak capital efficiency

ROCE

-1.5%

Weak

Low return on total capital employed

Debt/Equity

5.78x

High

High leverage

Revenue Growth (YoY)

18.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

66.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.39%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹251 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

19.4x

ROA

7.5%

Average

Average asset productivity

Operating Margin

7.0%

Average

Average margins

Net Margin

-2.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.51

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.35

Defensive

Steadier than the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

214.1 / 229.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹6,833 Cr	₹7,274 Cr	₹7,827 Cr	₹8,056 Cr	+5.6%
EBITDA	₹829 Cr	₹763 Cr	₹950 Cr	₹349 Cr	-25.0%
EBITDA Margin	12.1%	10.5%	12.1%	4.3%	—
PAT (Net Profit)	₹463 Cr	₹440 Cr	₹556 Cr	-₹242 Cr	—
EPS	₹7.27	₹6.88	₹8.64	₹-3.76	—
ROE	17.4%	14.7%	16.4%	-8.2%	—
ROCE	18.4%	16.2%	19.2%	-1.5%	—
Total Debt	₹1,005 Cr	₹683 Cr	₹479 Cr	₹199 Cr	-41.7%
Free Cash Flow	₹473 Cr	₹760 Cr	₹640 Cr	₹640 Cr	+10.6%

🟢 Revenue has grown at 5.6% a year over 3 years.

🔴 EBITDA has shrunk at 25.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 12.1% to 4.3% over 3 years (-7.8 pts).

🔴 PAT (Net Profit) has turned negative, from ₹463 Cr to -₹242 Cr.

🔴 EPS has turned negative, from ₹7.27 to ₹-3.76.

🔴 ROE has fallen from 17.4% to -8.2% over 3 years (-25.6 pts).

🔴 ROCE has fallen from 18.4% to -1.5% over 3 years (-19.9 pts).

🟢 Total Debt has shrunk at 41.7% a year over 3 years.

🟢 Free Cash Flow has grown at 10.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6,083 Cr

Total Liabilities

₹2,647 Cr

Cash & Equivalents

₹153 Cr

Operating Cash Flow

₹723 Cr

Capex

-₹83 Cr

Shareholding (proxy)

Institutional Holding

77.2%

Insider Holding

0.0%

Corporate Actions

Next Earnings

05 Nov 2026

Dividend Rate

₹3

Ex-Dividend Date

24 Jul 2026

Analyst Consensus

Recommendations

30 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹329.1

+52.7% vs CMP

Target Range

₹285 – ₹410

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

1 positive2 mixed3 general

Crompton Greaves Stock In Green As Firm Targets Rs 250-300 Cr From Super-Premium Brand | Time To Buy?

Goodreturns, 14 Oct

CROMPTON Outlook for the Week

Equitypandit, 09 Oct

Crompton Greaves Consumer Electricals Ltd Q2 Results: Profit surges 65% to Rs 124 crore

The Economic Times, 16 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Crompton Greaves Consumer Electricals to host Q1FY27 earnings call

scanx.trade, 15 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Crompton Greaves Q2 Results: Profit beats estimates, jumps 68% on record export sales

CNBC TV18, 16 OctResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Household appliances stocks Blue Star, Crompton dip up to 6%; here's why

Business Standard, 07 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Reported insider holding is low — cross-check the official promoter shareholding % in the company's exchange filing.

DalalBaazaar Thesis

MiddlingFinancial Health · Risk

WeakBusiness Quality · Growth · Profitability · Valuation

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Interest cover stays above 3x · see Key things to watch ↑