⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
CROMPTON - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | CROMPTON | Market Cap | 16,166 Cr. | Current Price | 251 ₹ | High / Low | 368 ₹ |
| Stock P/E | 32.8 | Book Value | 56.1 ₹ | Dividend Yield | 1.20 % | ROCE | 20.1 % |
| ROE | 16.5 % | Face Value | 2.00 ₹ | DMA 50 | 253 ₹ | DMA 200 | 285 ₹ |
| Chg in FII Hold | -5.01 % | Chg in DII Hold | 4.49 % | PAT Qtr | 112 Cr. | PAT Prev Qtr | 85.3 Cr. |
| RSI | 48.4 | MACD | -1.77 | Volume | 16,55,472 | Avg Vol 1Wk | 21,84,293 |
| Low price | 217 ₹ | High price | 368 ₹ | PEG Ratio | -19.0 | Debt to equity | 0.05 |
| 52w Index | 22.3 % | Qtr Profit Var | 0.17 % | EPS | 7.21 ₹ | Industry PE | 43.3 |
📊 Core Financials
- Revenue Growth: PAT improved (₹112 Cr vs ₹85.3 Cr), but growth is modest
- Profit Margins: EPS ₹7.21, moderate profitability
- Debt Ratio: Very low (Debt-to-Equity 0.05)
- Cash Flows: Stable, supported by consistent operations
- Return Metrics: ROCE 20.1%, ROE 16.5% — healthy efficiency
💹 Valuation Indicators
- P/E Ratio: 32.8 (below industry PE of 43.3, relatively fair)
- P/B Ratio: ~4.47 (premium valuation)
- PEG Ratio: -19.0 (negative, weak growth outlook)
- Intrinsic Value: Current price ₹251 is near support (₹217), offering cautious entry
🏢 Business Model & Competitive Advantage
- Consumer electricals company with strong brand presence
- Wide distribution network across India
- Low debt enhances financial stability
- Dividend yield of 1.20% adds shareholder value
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹230–₹255 range (near support levels)
- Long-Term Holding: Suitable for investors seeking steady consumer sector exposure
- Risk: Weak growth outlook and negative PEG ratio may limit upside
✅ Positive
- Low debt ensures strong financial stability
- ROCE and ROE are healthy compared to peers
- Dividend yield of 1.20% provides steady returns
⚠️ Limitation
- Negative PEG ratio indicates poor growth prospects
- Stock trading below DMA 50 & DMA 200, showing weak momentum
- P/B ratio reflects premium valuation
📰 Company Negative News
- Decline in FII holdings (-5.01%) shows reduced foreign investor confidence
🌟 Company Positive News
- DII holdings increased (+4.49%), showing strong domestic investor support
- PAT improved from ₹85.3 Cr to ₹112 Cr
🏦 Industry
- Consumer electricals sector with long-term demand
- Industry PE at 43.3, CROMPTON trades below this, offering relative value
- Sector growth supported by rising urbanization and consumer spending
🔎 Conclusion
- CROMPTON offers stability with low debt and strong brand presence
- Valuation is fair compared to industry, but growth outlook is weak
- Entry near ₹230–₹255 is favorable for long-term conservative investors
- Best suited for dividend-focused portfolios with moderate risk tolerance