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CROMPTON: Expanding Solar Rooftop Orders Will Drive Future Earnings Momentum

Rural Electrification And Efficiency Will Shape Future Markets

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CROMPTON
AnalystConsensusTarget
Not Invested
Published 06 Feb 2025

Update shared on 07 Dec 2025

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-2.9%

Analysts have nudged their price target on Crompton Greaves Consumer Electricals slightly higher to align with a fair value estimate of ₹366.48, which reflects largely unchanged assumptions on growth, margins, and valuation multiples.

What's in the News

  • Won a large EPC contract from NREDCAP in Andhra Pradesh for 2 kW solar rooftop systems totaling 77.40 MWp for 38,699 SC and ST consumers, with an order value of about INR 445 crore. The project is to be executed in around six months (company announcement).
  • Secured its first major solar rooftop order in Telangana worth about INR 52 crore. This marks a strategic commercial entry into the solar rooftop category and reinforces its focus on sustainable energy solutions (business expansion announcement).
  • Received an additional solar rooftop supply order in Telangana, including inverters, ACDB, DCDB, and solar modules, with an approximate value of INR 51.6 crore. This expands its presence in state household solar deployments (company announcement).
  • Obtained empanelment from Madhya Pradesh Urja Vikas Nigam for design, supply, and commissioning of off grid DC and AC solar water pumping systems of 2 HP to 7.5 HP under the PM KUSUM B scheme (company announcement).
  • Scheduled a board meeting on November 6, 2025, to consider and approve unaudited financial results for the quarter and half year ended September 30, 2025. The agenda also includes governance actions such as the proposed appointment of Sundaram Damodarannair as a non executive, non independent director (board and shareholder meeting notices).

Valuation Changes

  • Fair value estimate is maintained at approximately ₹366.48 per share, indicating no change in the base case intrinsic value.
  • The discount rate has edged up slightly to about 15.08 percent, reflecting a marginally higher required return on equity.
  • The revenue growth assumption is effectively unchanged at around 11.97 percent per annum, suggesting stable expectations for top line expansion.
  • The net profit margin has nudged up fractionally to roughly 7.35 percent, indicating a very small improvement in long term profitability assumptions.
  • The future P/E multiple is broadly unchanged at about 44.53 times, signaling a stable view on the company’s long term valuation multiple.

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