Crompton Greaves share price soars 6% after Q4 numbers, hits 2-week high. Should you buy?

Crompton Greaves share price in focus today: Crompton Greaves Consumer Electricals, one of India’s leading consumer companies, saw its shares surge 6% during early trade on Friday, May 16, hitting a two-week high of ₹346 apiece, following the company’s broadly in-line March quarter performance.

Sluggish growth in the fans segment was offset by healthy demand for small appliances and Butterfly Gandhimathi Appliances. The company also announced its entry into the rooftop solar segment, aligning with its strategy to expand into adjacencies and grow its Total Addressable Market (TAM), currently estimated at ₹20,000 crore.

On Thursday, the company reported a 28.7% year-on-year increase in consolidated net profit to ₹171.74 crore for the March quarter of FY25, compared to ₹133.43 crore in the same period last year.

Revenue from operations rose 5.08% to ₹2,060.64 crore, from ₹1,961 crore a year earlier. Revenue from the electric consumer durables segment grew 5.73% to ₹1,602.92 crore, while revenue from the lighting products business declined 1.8% to ₹276.07 crore. Revenue from its subsidiary Butterfly, acquired in February 2022, rose 18.13% to ₹181.65 crore.

For the full financial year ended March 31, 2025, CGCEL’s net profit rose 27.7% to ₹564.08 crore, compared to ₹441.78 crore a year earlier. Total consolidated income for FY25 increased 7.48% to ₹7,932.38 crore.

Delayed summer conditions affected fan sales, a segment where Crompton is viewed as a market leader by analysts. As a result, electric consumer durables revenue grew at 6% year-on-year, slower than the 14.3% growth recorded in the previous fiscal year. Crompton noted that demand conditions could improve from the second half of FY26.

Should you buy Crompton Greaves stock after Q4

Following the Q4 results, domestic brokerage firm Nuvama Institutional Equities maintained its ‘Buy’ rating on the stock with a target price of ₹460 per share. The brokerage believes the company’s entry into rooftop solar presents a long-term opportunity and could be margin accretive.

Additionally, Crompton is planning a ₹3.5 billion capex over the next 2–3 years to set up a greenfield facility, with Phase 1 focused on expanding fan production and other product lines. Butterfly, which has undergone a transition over the past 4–5 quarters, has now been turned around, and the company has guided for mid-teen revenue growth and double-digit margins over the next two to three years, according to the brokerage.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.