Reliance Securities has given a buy recommendation on Crompton Greaves Consumer Electricals with a Target Price of Rs 290, as it feels the company is poised for strong double-digit growth, going forward.
The brokerage says the company is well positioned with a strong presence across fans, lighting, pumps and appliances in the domestic light electrical industry.
Looking ahead, its consumer business is expected sustain growth on the back of strong demand and higher outsourcing. “We believe thrust on digital payments and shift in market from unorganised to organised segment in the current GST regime will be a very positive for the organised players like CGCEL,” it said.
“Expected double-digit growth in light electrical industry continues to augur well for CGCEL, in our view. Valuing at 35x P/E to its FY21E EPS, we maintain a Target Price of Rs 290 for the stock,” it said.
Source: Economic Times