After remaining under pressure, shares of Crompton Greaves Consumer Electricals regained strength in Wednesday’s trade, gaining 4% to ₹204 apiece. The rebound also caught the attention of Choice Equity Broking, with the brokerage expecting the recovery to sustain amid a favourable technical setup.
The brokerage said that the stock has taken strong multi-year horizontal support around the ₹190– ₹200 zone (which aligns with the key 0.786 Fibonacci retracement level near ₹193.35). Historically, this crucial demand area has triggered robust bullish rebounds, highlighting strong buying interest and price rejection at lower levels.
It added that momentum indicators further support a potential upside reversal, with the monthly Relative Strength Index (RSI) at 36.25, approaching oversold territory where historical price bounces have frequently originated. Holding firmly above this demand floor paves the way for a recovery trajectory towards ₹230.
For positional trades, the brokerage said the stock can be considered around ₹202.80 with a stop-loss set at ₹189, below the multi-year support zone, offering a favorable risk-to-reward ratio for a recovery target of ₹230.
Domestic brokerage firms have largely maintained their Buy ratings on Crompton Greaves Consumer Electricals following its September-quarter results, with target prices ranging from ₹275 to ₹300.
Motilal Oswal reiterated its 'buy' rating on the stock with a target price of ₹300, based on 30 times its estimated earnings per share for FY28. BOB Capital Markets maintained its ‘buy’ rating and assigned a valuation of 25 times its estimated earnings per share for September 2028, arriving at a target price of ₹280 for September 2027.
ICICI Direct Research also maintained its 'buy' rating, with a target price of ₹275, valuing the stock at 24 times its estimated FY28 earnings per share.
The company's September quarter earnings were in line with its estimates. Revenue grew around 18% year-on-year to ₹2,260 crore, while EBITDA rose around 24% to ₹200 crore. The operating profit margin (OPM) increased by 45 basis points year-on-year to around 9%, while adjusted profit after tax (PAT) grew around 38% to ₹120 crore.
Management indicated that Q2FY27 performance was supported by strong double-digit growth across businesses. Around 80% of commodity inflation has been passed on through pricing actions. Growth in the electrical consumer durables (ECD) segment was led by fans and appliances, while Butterfly and exports also performed well.
The company continued to expand its solar rooftop and wire businesses. The company reiterated its FY29 EBITDA margin target of around 11–12% and its target of doubling annual revenue growth from the current level of around 15%.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
Catch all the Business News , Market News , Breaking News Events, JIO IPO Listing Today LIVE and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.