CROMPTON - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | CROMPTON | Market Cap | 17,538 Cr. | Current Price | 272 ₹ | High / Low | 364 ₹ |
| Stock P/E | 35.6 | Book Value | 56.1 ₹ | Dividend Yield | 1.10 % | ROCE | 20.1 % |
| ROE | 16.5 % | Face Value | 2.00 ₹ | DMA 50 | 252 ₹ | DMA 200 | 276 ₹ |
| Chg in FII Hold | -0.06 % | Chg in DII Hold | 0.38 % | PAT Qtr | 112 Cr. | PAT Prev Qtr | 85.3 Cr. |
| RSI | 63.2 | MACD | 6.55 | Volume | 76,37,855 | Avg Vol 1Wk | 1,03,49,312 |
| Low price | 217 ₹ | High price | 364 ₹ | PEG Ratio | -20.6 | Debt to equity | 0.05 |
| 52w Index | 37.4 % | Qtr Profit Var | 0.17 % | EPS | 7.21 ₹ | Industry PE | 46.7 |
📊 Crompton Greaves Consumer (CROMPTON) shows decent fundamentals with ROE (16.5%) and ROCE (20.1%), supported by low debt-to-equity (0.05). EPS of ₹7.21 provides earnings visibility, and dividend yield of 1.10% adds shareholder value. Quarterly PAT growth (112 Cr vs 85.3 Cr) indicates operational improvement. However, valuation is stretched with P/E (35.6) compared to industry average (46.7), and PEG ratio (-20.6) highlights weak growth-adjusted valuation. Technicals show near-term bullishness (RSI 63.2, MACD 6.55), but price remains close to 200 DMA (276 ₹), indicating resistance.
🎯 Entry Zone: 250 ₹ – 260 ₹ (near 50 DMA support)
📌 Long-Term Holding: Suitable for accumulation with cautious exposure. Fundamentals are stable, but valuations and weak PEG ratio limit long-term compounding potential. Upside toward 320–340 ₹ possible if earnings growth sustains.
Positive
- Strong ROCE (20.1%) and ROE (16.5%) highlight efficiency.
- Low debt-to-equity (0.05) ensures financial stability.
- Quarterly PAT growth supports earnings momentum.
- Dividend yield of 1.10% adds investor returns.
Limitation
- High P/E (35.6) compared to intrinsic comfort levels.
- Negative PEG ratio (-20.6) indicates poor growth-adjusted valuation.
- FII holdings declined (-0.06%), showing reduced foreign investor confidence.
- Price near 200 DMA resistance (276 ₹).
Company Negative News
- No major negative news reported; valuation and growth metrics remain concerns.
Company Positive News
- Quarterly PAT growth (112 Cr vs 85.3 Cr) shows operational improvement.
- Dividend yield supports investor confidence.
- DII holdings increased (+0.38%), reflecting domestic institutional support.
Industry
- Industry P/E (46.7) is higher than CROMPTON’s P/E (35.6), suggesting relative undervaluation within the sector.
- Consumer electricals sector remains resilient, supported by demand for appliances and home solutions.
Conclusion
⚡ CROMPTON is a fundamentally stable company with strong efficiency and low debt. Entry around 250–260 ₹ offers favorable risk-reward. Long-term holding is justified with cautious exposure, though valuations and weak PEG ratio limit compounding potential. Upside toward 320–340 ₹ possible if earnings growth sustains.
This structured HTML report balances CROMPTON’s efficiency and stability with its valuation risks and growth limitations. If you’d like, I can extend this into a peer benchmarking overlay against other consumer electrical companies like Havells or V-Guard to highlight relative positioning. Would you like me to prepare that next?