Our 3rd company in the Series of Best Stocks to Buy in India for Short term 2021 is Crompton Greaves Consumer Electricals Ltd
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
Crompton Greaves Consumer Electricals manufactures and markets a range of consumer products. The Company’s main products/services include lighting products (luminaries and light sources) and electrical consumer durables.
Now Let’s check the important fundamental figures of this company. This is a mid cap company with Market Cap ₹28,835cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 46.76
Sector PE Ratio: -372.14
PE Ratio of this company is high but better than Sector’s PE. So it’s a Average PE than the peers of this company.
PB Ratio : 14.93
Sector PB Ratio : 4.96
PB Ratio of this company is high than Sector’s PB ratio. So it’s Below Average PB than the peers of this company.
Dividend Yield : 1.20%
Sector Dividend Yield : 0.62%
Dividend Yield of this company is high than Sector. Dividend of this company is Average than the peers of this company.
ROE (Return on equity) and ROCE (Return on capital equity) is Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
You can see the company growth clearly in the above table, in 2019 Net profit was 401.39 Cr. only and in 2020, It increased to 496.39 Cr. and in 2021, it is increased to 616.65 Cr.
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021 , Company have 1,685.87 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
Debt Level: CROMPTON’s debt to equity ratio (26.8%) is considered satisfactory.
Reducing Debt: CROMPTON’s debt to equity ratio has reduced from 311.3% to 26.8% over the past 5 years.
Debt Coverage: CROMPTON’s debt is well covered by operating cash flow (160.3%).
Interest Coverage: CROMPTON’s interest payments on its debt are well covered by EBIT (66x coverage).
Share Holding Pattern
|Promotor Holding||Foreign Institution|
|Other Domestic Institutions||Retail & Others|
Above table showing Promotors holding which is 5.99% in June 2021. FIIs invested in June 2021 with 40.14% and retail investor is 11.83%.
Now We’ll check the return of the company, This company started from Rs. 145.95 at 18 may 2016. This company given 76.41% returns in last 1 year from 2020 to 26 Aug 2021.
Investment Checklist for Crompton Greaves Consumer Electricals Ltd.
- The company is currently profitable
- Earnings are forecast to grow by an average of 15.6% per year for the next 3 years
- Debt level is low and not considered a risk
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- Profit margins improved or CROMPTON became profitable
- They have sufficient analyst coverage
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹51B)
- Market cap is meaningful (₹288B)
- CROMPTON does not have negative shareholders equity.
According to its historical performance we can predict stock target.
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
Entry Buying Zone : 390 to 420
Target: 540 (40% Upside)
Time Horizon: 1 Year
Risk Profile: Low Risk (Stock is 1.88x as volatile as Nifty)
Hope you liked Our 3rd company in the Series of Best stocks to buy in India for short term 2021. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss