In spite of the markets tanking, CGCEL seems to have had a decent listing. There are no sellers available in both the exchanges.
As of 12:20 IST 13-May-2016
However, Crompton Greaves Consumer Electricals shares were trading higher than analysts' expectations; analysts polled by NDTV Profit expected Crompton Greaves Consumer Electricals to list between Rs 110-120.
Crompton Greaves Consumer Electricals' estimated FY17 earnings per share (EPS) is Rs 4.7, which translate to a valuation of 29 times price earnings. Crompton Greaves Consumer Electricals' peers V-Guard, Bajaj Electricals and Havells trade at 26.5, 16 and 32 times their price earnings.
Analysts expect Crompton Greaves Consumer Electricals' valuation to improve and match with the valuation of Havells India going ahead.
"Over a period of time, it (Crompton Greaves Consumer Electricals ) should come closer to Havells' trading multiple. In last five years, there is actually no difference between Havells' and Crompton Greaves Consumer Electricals' top-line growth, which means the brand strength of Crompton is extremely good/as good as Havells," said Inderjeetsingh Bhatia, associate director at Macquarie Capital Securities.
"This (Crompton) is a much older brand, around 30-40 years old. Crompton's return ratios are even slightly better than Havells' because of the fact that they follow an asset light model compared to Havells. Crompton outsources most of the production, whereas Havells does most of the production in-house to have control over quality," Mr Bhatia told NDTV Profit.
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