Jun 13, 2012 05:27 PM IST | Source: CNBC-TV18

Crompton Greaves may rally to Rs 120- 124: SP Tulsian

Crompton Greaves may rally to Rs 120- 124, says SP Tulsian,

Crompton Greaves may rally to Rs 120- 124, says SP Tulsian,

Tulsian told CNBC-TV18, "Margin pressures we have already seen for the power distribution space for Crompton in the Q4 results, which have been very disappointing and you don’t have any hopes of the margins getting improved, which was at 5% because they need to ramp it up at least in the double digit if not to 12-14%. So concerns definitely remains on Crompton Greaves, but the same view may not be taken for the Voltas because the stock post Q4 numbers have been moving in a range. It was ruling at Rs 90, moved to Rs 110. So now the range of Rs 99-110 can be taken as a trading range, but over the next one month from an investor’s point of view I am expecting the share to move to Rs 120-124.”

He further added, “Cummins continues to remain an investment grade stock. If somebody can keep a view of about 6 months the stock is definitely very good because Cummins and Thermax both are ruling in the same space. In the present scenario you have seen concerns on the margin of both the companies, but I am quite comfortable taking the investment call on both Cummins and Thermax over the 6 months horizon.”

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