Crompton Consumer's fortunes may light up as Covid-19 lockdown eases

Crompton Greaves Consumer Electricals (Crompton Consumer) has gained about 21 per cent since May lows. While the company's March quarter performance had shown resilience on the margins front, even as sales declined, the easing of the lockdown has improved sentiment. Analysts, despite cutting their FY21 earnings to factor in the lockdown impact, have also been hopeful of a faster recovery for the company, given it’s product range, which is less discretionary and seasonal in nature.

In Q4, the profit margin maintained a strong trajectory, improving sequentially due to cost control and a superior sales-mix. Analysts believe Crompton Consumer is better