Crompton Greaves shares rebound 4% after recent losses: Can the beaten-down stock sustain its recovery?

Historically, this crucial demand area has triggered robust bullish rebounds, highlighting strong buying interest and price rejection at lower levels. It added that momentum indicators further support a potential upside reversal, with the monthly Relative Strength Index (RSI) at 36.25, approaching oversold territory where historical price bounces have frequently originated. Holding firmly above this demand floor paves the way for a recovery trajectory towards ₹230.

For positional trades, the brokerage said the stock can be considered around ₹202.80 with a stop-loss set at ₹189, below the multi-year support zone, offering a favorable risk-to-reward ratio for a recovery target of ₹230.Crompton Q2 results: Brokerages retain Buy calls, set targets up to ₹300 Domestic brokerage firms have largely maintained their Buy ratings on Crompton Greaves Consumer Electricals following its September-quarter results, with target prices ranging from ₹275 to ₹300.

Motilal Oswal reiterated its 'buy' rating on the stock with a target price of ₹300, based on 30 times its estimated earnings per share for FY28. BOB Capital Markets maintained its ‘buy’ rating and assigned a valuation of 25 times its estimated earnings per share for September 2028, arriving at a target price of ₹280 for September 2027. ICICI Direct Research also maintained its 'buy' rating, with a target price of ₹275, valuing the stock at 24 times its estimated FY28 earnings per share.

The company's September quarter earnings were in line with its estimates. Revenue grew around 18% year-on-year to ₹2,260 crore, while EBITDA rose around 24% to ₹200 crore. The operating profit margin (OPM) increased by 45 basis points year-on-year to around 9%, while adjusted profit after tax (PAT) grew around 38% to ₹120 crore. Management indicated that Q2FY27 performance was supported by strong double-digit growth across businesses.

Around 80% of commodity inflation has been passed on through pricing actions. Growth in the electrical consumer durables (ECD) segment was led by fans and appliances, while Butterfly and exports also performed well. The company continued to expand its solar rooftop and wire businesses. The company reiterated its FY29 EBITDA margin target of around 11–12% and its target of doubling annual revenue growth from the current level of around 15%.Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.