Crompton Greaves Consumer Electricals Ltd (Crompton) – a 75-year-old brand that makes fans, lights, pumps, and the occasional excuse for weak growth – is India’s default electrician’s best friend. The stock, however, has been behaving like a tubelight with a faulty choke: flickering, frustrating, and testing investor patience. Market cap? ~₹21,000 crore. Market share? Impressive in fans and pumps. Market vibes? More “pankha company” memes than serious investor respect.
2. Introduction
Imagine running a brand older than half of Bollywood, trusted by households, and still struggling to deliver consistent growth. That’s Crompton for you.
The company has been on a “Crompton 2.0” makeover since 2023: shouting about premiumization, GTM excellence, brand investments, and innovation. Translation? “We’re tired of being the cheap fan and tubelight guys; now we want to be posh.”
Advertising spends in FY24 were a spicy ₹92 crore – which, let’s be honest, is like putting Katrina Kaif in an ad to sell ceiling fans. Great optics, but does it really make your home cooler?
Also, let’s not forget the Butterfly Gandhimathi acquisition. Crompton swallowed this South Indian kitchen appliance darling with dreams of synergy. But instead of butterflies in the stomach, investors feel like they ate too much biryani – bloated and uncomfortable.
So here we are: a legacy brand, now trying to play the innovation game. Will Crompton become India’s Dyson, or will it remain that “fan uncle” in every Indian home?
What do you think – is legacy a blessing or a curse for consumer brands?
3. Business Model – WTF Do They Even Do?
Crompton operates two main segments:
Electrical Consumer Durables (76% of revenue): Fans, pumps, water heaters, coolers, mixer grinders, and basically anything your neighborhood kirana store keeps next to the incense sticks. They even make solar pumps now – because why not? Everyone’s doing solar.
Lighting (12% of revenue): LED lamps, battens, panels, streetlights. But honestly, this segment is like Akshay Kumar’s recent comedies – still around, but not pulling the crowd.
Butterfly Appliances (12% of revenue): Mixers, wet grinders, LPG stoves. Strong presence in South India, where idli batter grinding is practically a religion.
The company brags about 500+ new products launched in FY23, 8 patents filed, and 35 new designs registered. Impressive. But remember, even Maggi launched atta noodles – didn’t change the game.
The irony? Installed fan capacity is 22.9 million units, but utilization is only 39%. Imagine buying a 12-seater Innova and only using two seats.
Question for you – are product launches real growth drivers, or just corporate fireworks?
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
1,998
2,138
2,061
-6.5%
-3.0%
EBITDA
192
232
264
-17.2%
-27.3%
PAT
124
152
172
-18.4%
-27.9%
EPS (₹)
1.90
2.36
2.63
-19.5%
-27.8%
Commentary: This is the financial equivalent of a fan running at speed 1 during a power cut. Revenue shrinking, profits dropping faster than OTT subscriptions after IPL season. EPS annualized? ~₹7.6. P/E still at 40x. Investors clearly value nostalgia more than numbers.
5. Valuation – Fair Value Range Only
P/E Method: EPS (TTM) ₹8.18. Industry P/E ~55.8. Crompton’s historical P/E ~35–45. Range = ₹286 – ₹368.
EV/EBITDA Method: EV = ₹21,218 Cr. EBITDA (TTM) = ₹913 Cr. Current EV/EBITDA = ~23.2. Peers trade at 20–28. Range = ₹18,000 – ₹25,500 Cr EV → per share ₹280 – ₹400.
Fair Value Range: ₹280 – ₹400. Current Price ₹328 sits comfortably in the middle like that uncle at weddings who isn’t the life of the party, but also not invisible.
Disclaimer: This range is for educational purposes only and not investment advice.
6. What’s Cooking – News, Triggers, Drama
Solar Pump Orders: ₹49 Cr from MSEDCL (Aug’25), ₹101 Cr from MEDA (Jun’25). Suddenly, Crompton is acting like an energy PSU.
Debt-Free: In July’25, they repaid ₹300 Cr NCDs and became net cash positive. Finally, no EMI stress!
Greenfield Plant: ₹350 Cr capex announced for rooftop solar entry. Because every FMCG-wannabe now wants a renewable cousin.
