Target: ₹340
CMP: ₹256.85
Crompton Greaves Consumer Electricals Ltd (Crompton) is one of India’s leading consumer electrical companies with a diversified presence across fans, pumps, lighting, appliances and kitchen products. Crompton is executing a “Crompton 2.0” transformation focused on premiumisation, sharper go-to-market execution, innovation and supply-chain efficiency, while expanding its addressable market through solar-led adjacencies, with early traction in solar rooftop solutions validating its long-term growth potential.
The solar rooftop business commenced with a ₹52 crore project in Telangana, followed by a landmark ₹445 crore order, taking the current order pipeline to over 50,000 units amounting to ₹500 crore. The solar pumps business continues to scale rapidly, with Crompton gaining 6-8 per cent national market share within 2 years, delivering 100 per cent y-o-y revenue growth and maintaining an unexecuted order pipeline of ₹255 crore, positioning solar as a meaningful medium-term growth driver.
We initiate coverage with a Buy rating and a target price of ₹340, valuing Crompton at 33x FY27E EPS.
Key risk: Crompton faces risks from weather-driven demand volatility, margin pressure due to commodity cost fluctuations and heightened competitive intensity, execution and working-capital risks in scaling solar businesses linked to government policies, and a potential dip in demand amid an economic slowdown.
Published on December 26, 2025
