Brokerage house CLSA has maintained its BUY CALL on Crompton Greaves Consumer as the company generates nearly 90 percent of its revenue from fans, water pumps and lighting. CLSA analysts argue that most of these are non-discretionary spending and they will continue seeing similar growth as was before coronavirus pandemic.

As per CLSA, Crompton Greaves Consumer is a financially sound company and the times will be challenging for new entrants and smaller companies in the segment. This will help Crompton Greaves Consumer to firm up its market share in different segments it operates in.

Many companies are facing tough times and brokerage houses will be busy in changing their ratings for some sectors, especially tourism, hotels and aviation. We could also see some downgrades for companies trading in oil sector. Energy companies might face volatile times due to massive change in crude oil price and the cost of natural gas.

CLSA also considers that Crompton Greaves Consumer could look for inorganic growth opportunities in the sector and the analysts expect net cash balance positions of the company to support the supply chain.

Crompton Greaves Consumer is a BUY with target price of Rs 225 as per CLSA.