New launches and strong growth pressures weigh on Crompton Consumer

The LED bulbs segment is witnessing some pricing pressure due to an increase in competitive intensity

Concerns over higher competition in the lighting segment have led to a 18 per cent correction in the Crompton Greaves Consumer Electrical stock since mid-August. 

While there are near-term pressures, analysts feel growth potential remains intact.

The light emitting diode (LED) bulbs segment is witnessing some pricing pressure due to an increase in competitive intensity. Nevertheless, since the lighting market has still seen only 35 per cent conversion to LEDs, there is huge opportunity for growth. Lower prices will help in driving volumes.

There are near-term headwinds due to price-led competition, says Kunal Seth at Prabhudas Lilladher Securities, who sees increasing volumes compensating