Synopsis Crompton Greaves Consumer Electrical Ltd.

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PCTE Group of Institutes,

Ludhiana
Investment Analysis and Portfolio Management, Sem-3

P RESENTATION S YNOPSIS
MBA 2 C

TOIPC: Crompton Greaves Consumer Electrical Ltd.


NAME: Himanshu Rawat (2011185)
OFFICIAL E-MAIL ADDRESS: Himanshupctemba20c@gmail.com

TABLE OF CONTENTS:

 Introduction of Company
 Business of Company (Products)
 Cash flow Analysis on Investment Decision
 Balance Sheet analysis on Investment Decision
 Income Statement Analysis
 Cost Analysis and Return Generated
 Capital Structure of Company
 Market Performance of Company
 Conclusion

INTRODUCTION:
 Crompton Greaves Consumer Electricals Ltd is one of the leading consumer companies in
India with a 75+ years old brand legacy.
 As of February 2016, Crompton Greaves Consumer Electricals is an independent company
under professional management and have 2 business segments – Lighting and Electrical
Consumer Durables.
 The company market its products under the “Crompton” brand name in India and select
export markets.
 Over the last few years, Crompton Greaves Consumer Electricals has launched some
breakthrough products like India’s first anti-dust fan and anti-bacterial LED bulb.
 The company manage its product portfolio by continuously understanding its consumers
better.

Products
FANS
Crompton fans help you stay cool and comfortable at all times. The company provide a wide
variety of sizes, designs, colours and aesthetics across the different types of fans to suit
every purpose. Innovation, high quality, great design and engineering have ensured its
products reach every nook and corner of India as well as other tropical countries. 2
 Ceiling Fans
 Pedestal Fans
 Table Fans
 Wall Mounted Fans
 Exhaust Fans
 Kitchen Fans

LIGHTING

The company's innovative range of lighting solutions let you create the perfect ambience at
home. The company's products are energy efficient and provide superior light output
making homes more comfortable.3
 LED Bulbs
 Luminaires
 Lamps

Home Appliances

Make your home comfortable with Crompton’s innovative and state-of-the-art range of
home appliances.4
 Air Coolers
 Water Heaters
 Food Preparation
 Garment Care
 Power Solutions

Pumps
Crompton’s extensive range of consumer pumps for household and special applications are
sturdy and provide an unfailing and steadfast performance5
 Residential Pumps
 Agricultural Pumps
 Specialty Pumps

Cash flow Analysis on Investment Decision


Crompton Greaves Consumer Electricals in 2021 reported a 6.13 percent decline in consolidated
net profit at Rs 151.09 crore for the quarter ended December 2020.
The company had posted a net profit of Rs 160.97 crore in the October-December period a year
ago, Crompton Greaves Consumer Electricals Ltd (CGCEL) said in a BSE filing.

Balance Sheet analysis on Investment Decision:

 Investment has increased on continuous basis from past 5 years.


 Capital work in progress has also increased which determines the short-term
investment decisions are taken in year 2020.
 Cash and bank have decreased and loan and advances has increased due to
investment in long and short term.

Income Statement Analysis:

 Net sales are continuously increasing for past five years.


 Operating profit is also increasing for past five years.
 Interest and tax have decreased for year 2020.
 Net profit is also continuously increasing for past five years.

Cost Analysis and Return Generated:

Return on investment is 33.8% in the year 2020.

Capital Structure of Company:

 The capital structure of company describes the solvency ratio of company.


 The debt-equity ratio is 0.12% which is good.
 If a company has more debt than its equity then its interest expenses are
going to be high & it gets difficult for that company to stay afloat.
Capital Structure - Crompton Greaves Consumer Electricals Ltd.

Period Instrument Authorized Capital Issued Capital -PAIDUP-

Capital (Rs.
From To   (Rs. cr) (Rs. cr) Shares (nos) Face Value Cr)

2019 2020 Equity Share 130.0 125.5 627283972 2.0 125.5

2018 2019 Equity Share 130.0 125.4 626985920 2.0 125.4

2017 2018 Equity Share 130.0 125.4 626785105 2.0 125.4

2016 2017 Equity Share 130.0 125.3 626746142 2.0 125.3

2015 2016 Equity Share 130.0 125.3 626746142 2.0 125.3

Market Performance of Company:

 Market capitalization of Crompton in year 2020 is Rs. 23857.07


crores.
 Market share price of the company has increased continuously from last five
years.
 As in 2017 it was 174.50 Rs and now 2021 it is 380.50 Rs.

Conclusion:
• Share price of company is increasing each year
• Wealth for shareholders are also increasing.
• Low risk grade for investors.
• Return is more than cost of capital.
• Investments and inventories are also increasing.

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