Nomura bullish on Crompton Greaves after Butterfly Gandhimathi merger, maintains ‘Buy’

Nomura further stated that it maintains its view that Butterfly commands higher gross margins (36.3% in 9MFY23) than Crompton (31.1% in 9MFY23), but its EBITDA margins (10.2% in 9MFY23) are depressed due to higher overhead and marketing costs.