Midcap Consumer Durable Stock Trading Near 52-week Low, Buy For Up To 40%, Says Keynote Capitals

Leading brokerage firm Keynote Capitals has assigned a "Buy" on Crompton Greaves Consumer Electricals Ltd. (CGCEL) with a target price of Rs 409 apiece. Given the target price, it can fetch up to 40% returns if purchased at the current market price. CGCEL operates in the Consumer Durable sector in the Household Appliances industry. It is one of the leading consumer companies in India with more than 90 years old brand legacy. It is a mid cap stock with a market capitalisation of Rs 18,586.94 crore.

The Union to Augment Benefitting Prospects, Buy for a target price of Rs 409 apiece

Keynote Capitals, "Crompton Greaves Consumer Electricals Ltd. (CGCEL) is among India's leading consumer electrical goods companies. On 24th March 2023, the Company announced a merger with its south India-focused subsidiary Butterfly Gandhimati Appliances Ltd. (BGAL), which it acquired in 2022. As per the scheme of the arrangement, public shareholders of BGAL shall receive 22 shares of CGCEL against every 5 shares of BGAL."

It added, "The objective of this merger is to optimally utilize resources present with both companies with greater operational and compliance convenience. CGCEL informed that the synergies will be achieved from revenue, direct, and indirect costs. As per the Company's guidance, this merger is expected to complete within 12-14 months. For more information, refer to our initiating coverage report and Q3 FY23 update."

CGCEL Share Price and Returns

The share of the CGCEL is currently trading at Rs. 292.30 apiece on NSE. It is trading 5.14% up from its 52 week low of Rs 278 apiece. It hit the new 52 week low on 20 March 2023, while the 52 week high it recorded on 13 September 2022 at Rs 429 apiece.
The stock gained 0.15 in the last 1 week. It has fallen 3.8% in 1 month and 13.71% in the 3 months, respectively. It has fallen 22.37% in the past 1 year. In the past 3 years, it delivered 51.77% positive return and in 5 years it delivered 23.46%.

Disclaimer - The stock has been picked from the brokerage report of Keynote Capitals. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.