Pick Of January 2024: Home Appliances Stock Near Rs 310 Recommended To Buy; 11% Returns In Near Term

Trading in the first month of 2024 to kick start from Monday onward. After robust gains to record-high levels in 2023, the market is expected to continue its strong bullish trend in the new year. Amidst this optimistic outlook, Religare Broking has recommended buying home appliances giant Crompton Greaves Consumer Electrical stock price. The brokerage has set a target price of Rs 345 on the stock, implying a potential upside of more than 11% from the current market price.

On BSE, Crompton Greaves's share price ended at Rs 310.85 apiece, up by 4.5% last week on Friday, which was also the last trading day of 2023. The company's market cap is at Rs 19,900.46 crore.

The stock's 52-week highs and lows are at Rs 348.85 and Rs 251.25 per share respectively. However, the stock's performance has been volatile broadly in 2023. Its monthly and six-monthly gains were up to over 9% and 7.5% on BSE. However, year-to-date in 2023, the stock is in red with a downside of 10%.

Hence, there is potential for upside in Crompton Greaves and January 2024 month may just fetch those gains.

In its technical rationale, Religare Broking highlighted that in the stock, 99% of the Open positions rolled to the next series (above par with respect to the 6-month average). Also, open of 9.2k contracts as against 6.6k previously with decent cash-based buying in the last 5 days of the series. It added that with the Possibly Long formation and Carry forward of these bets, the Stock may scale higher.

Furthermore, the brokerage mentioned that Crompton recovered strongly from the lows (252 levels) after the completion of a Bullish Harmonic Pattern with a noticeable surge in volumes at the Potential Reversal Zone.

It said, "After a decline from the resistance zone of 320, it registered a breakout from the basing pattern and reclaimed its short-term moving average i.e. 10 WEMA, which also coincides with the 61.8% retracement level of its prior upmove from 251 to 320."

Finally, its note added, "Following the price action and volume activity, we believe the recovery in the stock to strengthen further and thus offering fresh buying opportunity."

Accordingly, the brokerage has set a target price of Rs 345 for Crompton Greaves.

With a brand legacy of 80+ years, Crompton Greaves Consumer Electricals is India's market leader in the category of fans and residential pumps.

Over the years, the organization has continuously strived to produce a range of innovative products that cater to the modern consumer including superior quality and high-performance water heaters, anti-dust fans, antibacterial LED bulbs and a range of other categories like air coolers, food processors like mixer grinders, electric kettles and garment care like irons. The company has further invested in brand and innovation to not only better understand and meet consumer needs but to also help drive energy efficiency.

Crompton's consumer business also has a well-established and organized distribution network driven by a strong dealer base across the country offering a wide service network and robust after-sales service to its customers.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.