Crompton Greaves Consumer may underperform on near-term demand concerns

Near-term demand is lower amidst a host of factors such as inflationary challenges on consumer spending, rural weakness, and Q2 being a seasonally weak quarter post a strong summer

The stock of Crompton Greaves Consumer Electricals has shed about 12 per cent since the start of the month due to a muted near-term outlook. Demand slowdown across segments and pre-buying in cooling products in the June quarter are expected to weigh on revenues going ahead. 

In addition to pre-buying in the preceding quarter, demand conditions are soft on account of lower consumer spending due to inflationary conditions, weakness in rural demand and the fact that Q2 remains a soft quarter after a strong summer. At the start of the festival season, Onam saw soft demand conditions