Motilal Oswal is bearish on Crompton Greaves has recommended sell rating on the stock with a target price of Rs 45 in its research report dated February 12, 2017.
Motilal Oswal's research report on Crompton Greaves
We cut our estimates for FY17/FY18 by 52%/10% to factor in the sale of ZIV and higher interest costs in Q317; we would revisit our numbers once we get more clarity on the sales/closure of the overseas T&D businesses. We roll over to FY19 but maintain our SELL rating with a target price of INR 45 (20x its FY19E EPS, in line with five year average). Key upside risks to our rating are: a) Sale of Overseas T&D business; and b) a sharp fall in competitive intensity in domestic T&D segment.
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