Crompton Greaves shares jumped 6% as Motilal Oswal opened with a buy. Target, check the upside potential

Shares of Crompton Greaves Consumer Electricals on December 18 were Rs. It rose as much as 6% to an intraday high of 264.30.

Rs. With a price of 350, the brokerage suggests an upside potential of 40% from current market levels. It noted that Crompton’s acquisition of 75% of Butterfly has significantly expanded its appliance portfolio and created strong synergies. The deal enables Crompton to strengthen its manufacturing capabilities, streamline operations and distribution and achieve deeper integration across the value chain.

Motilal Oswal says the company’s new ‘Crompton 2.0’ program is doing well. Built around four strategic pillars: strengthening and protecting the core portfolio, leveraging the kitchen segment, transforming the lighting business and expanding into new segments. These priorities are supported by key enablers such as organizational development, brand building, operational excellence, a sharp go-to-market strategy, digital enablement, customer-centric innovation and portfolio premiumisation – aimed at delivering accelerated growth and improved profitability.

“The company has increased investment in advertising to increase overall brand visibility. Increased allocation towards digital platforms to drive consideration and preference for the brand. This has increased brand distinctiveness and resulted in greater engagement on social media, given that the new age audience spends significant time on social platforms,” ​​analysts said in a note.

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Motilal expects Crompton to deliver a revenue CAGR of around 8% during FY26-FY28, with segment-wise growth estimated at 8% in ECD, 6% in Lighting and 10% in Butterfly. Gross margins are likely to improve during FY27-FY28, supported by pricing actions, product premiumization and ongoing cost-efficiency initiatives.

“During the same period, we estimate EBITDA and PAT CAGR of 17% and 21% respectively, with EBITDA margins expanding to 10.3% in FY27 and 11.2% in FY28, compared to 9.7% (vs. average) in FY25-Y 12.3% in FY21-5Y,” it said.

Higher advertising and promotional spend, along with efforts to strengthen brand equity and upgrade the product portfolio, will support the company’s medium-term growth. The stock has traded at an average P/E multiple of 35x over the last five years, and applying the same multiple to December 2027E earnings would translate to Rs. 350 gets a target price, the brokerage said.

At around 12:25 pm, the company’s shares were up 4.5% from their last close on the NSE, at Rs. was trading at 260. Crompton Greaves share price has fallen 31% in 2025.

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