Crompton Consumer on a firm footing, led by growth in electrical appliances

Improving profitability in durables, tax cuts to drive earnings

Crompton Greaves Consumer Electricals, which had remained under pressure due to stake sale by private equity investors, has rebounded well and is up more than 12 per cent since August lows. The company’s prospects remain firm which is evident from the fact that majority of shares offloaded by private equity investors were picked up by mutual funds, point out analysts. Also, the stake sale now has taken away a major overhang on the stock.

On the business front, the company has been doing well, led by its electrical consumer durables (ECD) segment, which accounts for more than two thirds of overall