NSEI:CROMPTON

Stock Analysis Report

Crompton Greaves Consumer Electricals

Executive Summary

Crompton Greaves Consumer Electricals Limited manufactures and markets consumer products in India.

Rewards

Earnings are forecast to grow 16.06% per year

Earnings grew by 28.2% over the past year

Risk Analysis

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has Crompton Greaves Consumer Electricals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CROMPTON has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

CROMPTON

1.5%

IN Consumer Durables

-2.4%

IN Market


1 Year Return

15.1%

CROMPTON

18.0%

IN Consumer Durables

6.8%

IN Market

Return vs Industry: CROMPTON underperformed the Indian Consumer Durables industry which returned 18% over the past year.

Return vs Market: CROMPTON exceeded the Indian Market which returned 6.8% over the past year.


Shareholder returns

CROMPTONIndustryMarket
7 Day-1.7%1.5%-2.4%
30 Day-3.8%0.003%-0.6%
90 Day6.6%13.8%7.2%
1 Year16.1%15.1%18.6%18.0%8.9%6.8%
3 Year79.3%75.1%41.2%39.4%31.8%24.8%
5 Yearn/a105.2%100.0%40.3%27.8%

Price Volatility Vs. Market

How volatile is Crompton Greaves Consumer Electricals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Crompton Greaves Consumer Electricals undervalued compared to its fair value and its price relative to the market?

34.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CROMPTON (₹247.65) is trading above our estimate of fair value (₹136.62)

Significantly Below Fair Value: CROMPTON is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CROMPTON is poor value based on its PE Ratio (34.2x) compared to the Consumer Durables industry average (17.8x).

PE vs Market: CROMPTON is poor value based on its PE Ratio (34.2x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: CROMPTON is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: CROMPTON is overvalued based on its PB Ratio (13x) compared to the IN Consumer Durables industry average (1.4x).


Next Steps

Future Growth

How is Crompton Greaves Consumer Electricals forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CROMPTON's forecast earnings growth (16.1% per year) is above the savings rate (6.5%).

Earnings vs Market: CROMPTON's earnings (16.1% per year) are forecast to grow slower than the Indian market (19.6% per year).

High Growth Earnings: CROMPTON's earnings are forecast to grow, but not significantly.

Revenue vs Market: CROMPTON's revenue (11.2% per year) is forecast to grow slower than the Indian market (11.5% per year).

High Growth Revenue: CROMPTON's revenue (11.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CROMPTON's Return on Equity is forecast to be high in 3 years time (35.8%)


Next Steps

Past Performance

How has Crompton Greaves Consumer Electricals performed over the past 5 years?

30.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CROMPTON has a high level of non-cash earnings.

Growing Profit Margin: CROMPTON's current net profit margins (9.7%) are higher than last year (8.2%).


Past Earnings Growth Analysis

Earnings Trend: CROMPTON's earnings have grown significantly by 30.3% per year over the past 5 years.

Accelerating Growth: CROMPTON's earnings growth over the past year (28.2%) is below its 5-year average (30.3% per year).

Earnings vs Industry: CROMPTON earnings growth over the past year (28.2%) exceeded the Consumer Durables industry 8.6%.


Return on Equity

High ROE: CROMPTON's Return on Equity (38%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Crompton Greaves Consumer Electricals's financial position?


Financial Position Analysis

Short Term Liabilities: CROMPTON's short term assets (₹14.7B) exceed its short term liabilities (₹10.5B).

Long Term Liabilities: CROMPTON's short term assets (₹14.7B) exceed its long term liabilities (₹2.0B).


Debt to Equity History and Analysis

Debt Level: CROMPTON's debt to equity ratio (31.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CROMPTON's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CROMPTON's debt is well covered by operating cash flow (78.5%).

Interest Coverage: CROMPTON's interest payments on its debt are well covered by EBIT (26.3x coverage).


Balance Sheet

Inventory Level: CROMPTON has a low level of unsold assets or inventory.

Debt Coverage by Assets: CROMPTON's debt is covered by short term assets (assets are 3.9x debt).


Next Steps

Dividend

What is Crompton Greaves Consumer Electricals's current dividend yield, its reliability and sustainability?

0.81%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%0.6%markettop25%2.5%industryaverage0.5%forecastin3Years1.3%

Current dividend yield vs market & industry

Notable Dividend: CROMPTON's dividend (0.81%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: CROMPTON's dividend (0.81%) is low compared to the top 25% of dividend payers in the Indian market (2.48%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CROMPTON has been paying a dividend for less than 10 years.

Growing Dividend: CROMPTON's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (27.6%), CROMPTON's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CROMPTON's dividends in 3 years are forecast to be well covered by earnings (38.6% payout ratio).


Next Steps

Management

What is the CEO of Crompton Greaves Consumer Electricals's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Mathew Job (49yo)

3.9yrs

Tenure

₹53,000,000

Compensation

Mr. Mathew Job, B.Tech. has been Chief Executive Officer of Crompton Greaves Consumer Electricals Limited since January 01, 2016. Mr. Job joined Crompton Greaves Limited in September 2015. Prior to joining ...


CEO Compensation Analysis

Compensation vs Market: Mathew's total compensation ($USD743.56K) is about average for companies of similar size in the Indian market ($USD633.49K).

Compensation vs Earnings: Mathew's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.9yrs

Average Tenure

Experienced Management: CROMPTON's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

60yo

Average Age

Experienced Board: CROMPTON's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: CROMPTON insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹23,986,24702 Dec 19
Rajesh Naik
EntityIndividual
Shares96,563
Max Price₹248.40
Sell₹7,203,82813 Nov 19
Shaji Abraham
EntityIndividual
Shares27,617
Max Price₹269.75
Sell₹104,15913 Nov 19
Shaji Abraham
EntityIndividual
Shares399
Max Price₹261.05
Buy₹12,770,52621 Dec 18
Shaji Abraham
EntityIndividual
Shares68,438
Max Price₹186.60

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Shantanu Khosla (59yo)

    MD & Executive Director

    • Tenure: 4.3yrs
    • Compensation: ₹75.00m
  • Mathew Job (49yo)

    Chief Executive Officer

    • Tenure: 3.9yrs
    • Compensation: ₹53.00m
  • Pragya Kaul

    Compliance Officer & Company Secretary

    • Tenure: 3.6yrs
    • Compensation: ₹3.80m
  • Sandeep Batra

    Chief Financial Officer

    • Tenure: 3.9yrs
    • Compensation: ₹37.50m

Board Members

  • Hemant Nerurkar (71yo)

    Independent Chairman

    • Tenure: 3.2yrs
    • Compensation: ₹1.90m
  • Shantanu Khosla (59yo)

    MD & Executive Director

    • Tenure: 4.3yrs
    • Compensation: ₹75.00m
  • P. Murty (69yo)

    Non-Executive Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹1.50m
  • Sahil Dalal (39yo)

    Non-Executive Director

    • Tenure: 3.3yrs
  • Shweta Jalan (43yo)

    Non-Executive Director

    • Tenure: 3.3yrs
  • Smita Anand (60yo)

    Independent Non Executive Director

    • Tenure: 1yrs
  • Damodarannair Sundaram (66yo)

    Non-Executive Independent Director

    • Tenure: 4.3yrs
    • Compensation: ₹1.80m
  • Promeet Ghosh

    Non-Executive Director

    • Tenure: 3.3yrs

Company Information

Crompton Greaves Consumer Electricals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Crompton Greaves Consumer Electricals Limited
  • Ticker: CROMPTON
  • Exchange: NSEI
  • Founded: 2015
  • Industry: Household Appliances
  • Sector: Consumer Durables
  • Market Cap: ₹155.333b
  • Shares outstanding: 627.23m
  • Website: https://www.crompton.co.in

Number of Employees


Location

  • Crompton Greaves Consumer Electricals Limited
  • Tower 3
  • 1st Floor
  • Mumbai
  • Maharashtra
  • 400070
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
539876BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2016
CROMPTONNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2016

Biography

Crompton Greaves Consumer Electricals Limited manufactures and markets consumer products in India. It operates in two segments, Electrical Consumer Durables and Lighting Products. The company offers air pu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 12:52
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.